Best’s Market Segment Report: AM Best Maintains Outlook on Philippines’ Non-Life Insurance Segment at Stable
AM Best has maintained its outlook on the Philippines’ non-life insurance segment at stable, citing in part robust growth prospects for the industry driven by economic expansion and a pipeline of large domestic infrastructure projects.
In its new Best’s Market Segment Report, “Market Segment Outlook: Philippines Non-Life Insurance,” AM Best also takes note of the country’s stabilised reinsurance capacity, the emergence of insurance pools to support underwriting capacity at the primary level, and a broadly supportive pricing environment. Another supporting factor is investment income, which is expected to remain bolstered by a robust domestic interest rate environment.
However, offsetting factors include macroeconomic uncertainty, a tighter monetary policy stance, and potential financial market volatility stemming from adverse geopolitical developments. “Another key potential headwind is the increasingly volatile weather conditions, which are placing significant pressure on non-life insurers and contributing to greater volatility in underwriting results,” said Susan Tan, senior financial analyst at AM Best and one of the authors of the outlook.
