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29 November 2011

IAG boss warns Europe's debts could impact global insurance market


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Europe's debt crisis could impact the global insurance industry, reducing competition in markets where insurers have exposure to troubled European sovereigns, says IAG chief.


According to a report by the Sydney Morning Herald, the chief executive of Insurance Australia Group, Mike Wilkins, speaking at the American Chamber of Commerce in Australia, said yesterday some European insurers with exposure to Greek and Italian bonds were facing write-offs worth more than €1 billion, and if the problem continued, the global supply of insurance could be affected.

"If there is further fall-out from the crisis in Europe, and unfortunately I think there is going to be, then that will have ramifications ... for some of the other European insurers who also have international operations", he said. "That may lead to reduced desire and capacity to expand their operations or to take on certain types of risks, which may [also] then see a reduction in the competition that occurs in some markets."

Press release



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