Moody’s has maintained its stable outlook for the global property and casualty (P&C) insurance sector next year.

The general economic upturn and falling unemployment rate will lift premium income, the ratings agency says.

“We expect P&C premiums to keep pace with economic growth in advanced economies and to outpace economic growth in emerging economies,” VP and Senior Credit Officer Bruce Ballentine said. “We see P&C penetration rates holding steady in advanced markets and rising gradually in emerging markets.”

Emerging markets will offer higher premium growth opportunities than North America and most of Europe.

The nominal P&C growth rate in China – one of the three biggest markets by premium volume – will ease to mid-double digits.

Latin America’s emerging markets will offer strong growth prospects next year, despite an expected slowdown in the economy.

Despite the stable outlook, potential dangers such as man-made and natural catastrophes could inflict heavy blows to the insurance sector, Moody’s warns.