Rating agency AM Best has maintained its outlook for the London insurance and reinsurance market at Stable, with improving access to third-party capital one of the key drivers.
AM Best believes that access to third-party reinsurance capital and the ability to more readily utilise insurance-linked securities (ILS) are positives for the London market, which should help players with their capital needs and hedging.
There are four key factors driving AM Best’s stable outlook for the London market: upward premium rate momentum to support underlying performance; reduced COVID-19 loss uncertainty; market modernisation efforts to reduce costs; and greater accessibility of third-party capital to the London market.
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