Gradually rising interest rates and a relatively steady global economy indicate a stable year ahead for the global insurance industry, according to Moody’s Investor Services.

Insurers’ investment yields will fall further but the trend is slowing, the ratings agency says.

It expects premiums to grow at low to mid single digits in North America and Europe, and at high single digits or double digits in Asia and Latin America.

“Key challenges for property and casualty insurers remain natural and man-made catastrophes, as well as setting pricing and reserves for business lines such as US casualty, where insured losses take a long time to materialise,” Moody’s said.