A Willis report shows the global general insurance sector has so far survived the credit crisis, with little exposure to subprime investments and few negative ratings actions.

The report by the group’s UK Market Security team says that unlike banks, the investment portfolios of general insurers contain smaller proportions of subprime-exposed collateralised debt obligations and issues of mortgage-backed securitisation.

Global Carrier Management MD Sarah Bramall says the insurance sector has so far remained isolated from the direct impact of the credit crisis.

“While there have been some notable exceptions, these have been companies that have stretched the boundaries of traditional insurance, assuming more of a ‘financial superstore’ structure,” she said.

The report warns that indirect impacts of the credit crisis – such as falling investment income due to deteriorating returns, increased errors and omissions and D&O claims related to subprime litigation, and adverse investor sentiment – may become more apparent in the third-quarter earnings reporting season.