Personal injury exposures could lead to insurer downgrades

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Insurers with exposure to a large number of personal injury claims could face a credit downgrade from ratings agencies as the uncertainty created by periodical payment orders (PPO) takes its toll.
Ratings agency Moody’s delivered the warning as PPOs, where the long-term injured receive an initial lump sum award together with regular payments to cover ongoing medical care costs, are becoming increasingly common.

“The uncertain and long-tailed nature of PPO liabilities exposes general insurers to t