According to Bloomberg Intelligence analysts, European property and casualty (P&C) insurers face three key challenges in 2024: inflation, high costs, and the need for premium rate increases. Claims inflation has characterized 2023 trading and is expected to continue in 2024, with insurers struggling to increase rates enough to fully offset rising expenses. Despite this, analysts believe that European P&C insurers’ robust business models and strong capital bases have supported their share prices, which have outperformed the broader market. To protect margins, analysts stress that premium rate increases must be maintained throughout 2024.
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