The European insurance industry is expected to stay stable in 2025, according to Fitch Ratings. The agency has kept its “neutral” outlook for the sector. This means Fitch does not expect major improvements or declines in the near future.
Several factors support this outlook. Strong capital levels and steady profits help insurers handle risks. However, challenges like inflation, low investment returns, and stricter regulations could limit growth.
Fitch notes that life insurance demand may stay weak in some markets. Customers are shifting to savings and investment products with better returns. On the other hand, property and casualty (P&C) insurance could see higher premiums due to climate-related risks like floods and storms.
The report also highlights differences across Europe. Germany and France, with large insurance markets, are likely to remain stable. Meanwhile, smaller markets may face more pressure from competition and economic uncertainty.
Overall, Fitch believes European insurers are well-prepared for 2025. While challenges exist, the sector’s strong financial health should keep it steady. Investors and customers can expect a balanced but cautious year ahead.
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