In industry news:

Fitch Ratings identified declining investment yields as a threat to U.S. P&C insurers heading into 2016, among several other significant operating challenges. Fitch stated that Investment yields fell again in 2015 and will likely fall further in 2016 unless long-term rates meaningfully rise. Fitch maintains a stable outlook on the US P&C sector in part due to strong capitalization from lighter-than-average catastrophe events. However, the New York-based rating organization says that the industry’s revenue production is dogged by premium rate competition in most segments and limited revenue growth in a still-recovering economy. These factors, combined with weak investment yields, mean that P&C profits will be under pressure in 2016.

Read more about Fitch’s assessment via Workers’ Compensation Institute 360 here.

Leave a Comment

Your email address will not be published. Required fields are marked *