We are pleased to share the Lockton H1 2023 Insurance Market Update. This issue provides insights across 24 business segments and includes a spotlight feature on our Brazil operations and the local trends in that insurance market. The global economy is undergoing paradigm shifts that will have profound long term political and economic implications on policy decisions. Commentators predict economic growth to slow across the globe in the current year and inflation to remain high, potentially triggering further interest rate hikes.
Rising interest rates do make
financing for businesses more
complicated and have the
potential to negatively impact insurers’ investment portfolios and solvency ratios. However,
insurers are set to benefit in the medium term, as the higher rates gradually translate into
better investment returns from fixed income products.