Strong capital positions and risk management processes in most European insurers will help them withstand Brexit shocks or a wider economic downturn, S&P Global says.

The insurers are better prepared now than before the global financial crisis a decade ago, according to the ratings agency.

But it warns the risks of weakened world trade and a disruptive Brexit are high and worsening.

However, S&P is likely to revise the UK insurance sector’s outlook, rather than downgrade ratings.

The risk of supply chain interruption and reduced ability to pay claims does not present a material risk for ratings.

Insurers are preparing for a no-deal Brexit, S&P says.