European life and non-life insurers face significant strategic decisions and difficult choices in 2012 with the recent European sovereign downgrades adding to capital pressures, according to Ernst & Young’s new European Insurance Industry Outlook.
Volatility and deterioration in macroeconomic and political factors are disrupting balance sheets, consumers and investors. Consumer needs and expectations are rapidly changing, and a mature insurance market in the region continues to make growth difficult to achieve. As a result, considerable challenges are hitting insurers who are seeking to improve both top-line and bottom-line performance.
"Economic developments in Europe create significant risks to insurer balance sheets and may result in a prolonged and stagnant organic growth environment,” says Andreas Freiling, Ernst & Young’s Europe, Middle East, India and Africa (EMEIA) Insurance Leader. “Fiscal imbalances that guided the downgrade of sovereign debt in weaker European countries have adversely affected the balance sheets of numerous European insurers and reinsurers.”
For more: European Insurers Face Ongoing Capital Challenges Amid Struggle to Deliver Top-line Growth in 2012 | Audit Profession News & Events
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