[March 01, 2018]

A.M. BestTV: Immediate Economic Outlook Bright, But U.S. Debt Casts Shadow, Says A.M. Best Senior Economist

In this ^A.M.BestTV episode, Meg Mulry, senior economist - economic and industry research, A.M. Best, said strong growth and improved labor markets appear set to continue, but higher levels of U.S. debt could create longer-term economic issues. Click on http://www.ambest.com/v.asp?v=rpeconomic218 to view the entire program.

In 2017, the U.S. economy continued to expand, with that growth accelerating in the second half of that year.

"2017 shaped up to be a very good year," said Mulry. "High consumer confidence, low unemployment, consumption growth and expansion throughout all metrics of the economy … A.M. Best expects all of this will continue in 2018. Also, A.M. Best anticipates increase business investments as a result of the tax reform law, as well as a strong global economy."

However, Mulry does have concerns about hourly wage growth, labor market participation, household debt and the raising of rates by the Federal Reserve (Fed).

Mulry said, "Hourly wage growth and participation in the labor market have not increased to a better level, although, in January wage growth did increased to 2.9% from 2.5% in December." She continued that household debt has expanded across all levels, and if the Fed continues to raise rates, "it will make the cost of servicing these debts more expensive."

Recent episodes of ^A.M.BestTV include:

• U.S. Health Insurers Profitable and Growth Challenged: A.M. Best Senior Director Sally Rosen and Associate Director Doniella Pliss, review a new report examining the state of the U.S. health insurance market, including how insurers are finding new ways to deliver services through vertical integration: http://www.ambest.com/v.asp?v=rphealth218.
• Class Actions, Mergers & Acquisitions and Initial Public Offering Suits Roil Directors & Officers Market: A.M. Best Industry Analyst Bobby Skrabal reviews a new report that outlines the forces shaping the market for Directors & Officers coverage: http://www.ambest.com/v.asp?v=dando218.
• Language Matters In Reaching the Affluent Sector: Ori Ben-Yishai, chief marketing officer, Chubb North America Personal Risk Services, examines a research study highlighting ways to reach, and not alienate, high net worth prospects: http://www.ambest.com/v.asp?v=benyishai218.
• Insurance-Linked Securities Funds Building New Alliances With Reinsurers, Says Best's Managing Director: Emmanuel Modu, managing director and global head of insurance-linked securities (ILS), A.M. Best, said some ILS funds have engaged with or even started reinsurers in order to simplify operations or reduce fronting costs: http://www.ambest.com/v.asp?v=modu218.

A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

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