Report: Increase in interest rates will not affect insurers' ratings

11/16/2010 | PropertyCasualty360

Increasing interest rates will not cause changes in ratings for P/C insurers, according to a report from Standard and Poor's. Lines of coverage with longer tails, such as workers' compensation, are more likely to be influenced by interest rates, however, the report added. "To the extent that higher nominal interest rates are accompanied by expansions of higher inflation, [P/C] insurers might have to adjust reserves, which is something Standard & Poor's would monitor closely," added the ratings firm.

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