2023 Italian Insurance Outlook Challenged by Decreasing Life Premiums and Inflation

DBRS Morningstar has released a commentary discussing the Italian life and non-life Insurance companies outlook for 2023.

Key highlights include:
• DBRS Morningstar expects the downward trend of the Italian life insurance premiums to continue in 2023.
• Italian insurance companies remain significantly exposed to Italian government bonds.
• We expect non-motor business lines to continue to drive non-life premiums growth in 2023.
• Inflation remains one of the main challenge for Italian non-life insurance companies.

“In DBRS Morningstar’s opinion, the trend of Italian life insurance premiums remain affected by lower policyholders' saving capacity, the presence of alternative and more remunerative forms of investment and high withdrawals and surrenders,“ said Mario De Cicco, Vice President, Global Financial Institutions at DBRS Morningstar. “We also anticipate that high inflation will continue to have a negative impact on Italian non-life insurance companies, with effects already visible in the first half of 2022.”