A reduction in the provision of globally sourced reinsurance capacity to markets in Central and West Asia has prompted some domestic insurers to step up to try to fill the gap, according to a new report released by AM Best.
In its new Best’s Market Segment Report, “Riskier Exposures for Central and West Asian Insurers as They Turn to Reinsurance to Drive Overseas Growth,” AM Best notes that the withdrawal of Russian capacity following the imposition of economic sanctions in 2022 created a gap in the market upon which other local carriers have been looking to capitalise.
The report also states that the operating environment in most of these markets remains highly competitive. This limits the ability to achieve domestic organic growth, with primary insurance companies in the region increasingly turning to international reinsurance business as they seek to diversify their existing domestic books of business and establish a presence in foreign markets.
“This could be beneficial for the carriers’ overall market profiles should they successfully achieve profitable growth,” said Todor Kitin, senior financial analyst at AM Best. “But also poses substantial risks for those insurers that lack appropriate expertise or knowledge in the segment or market into which they are expanding.”
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=353044.
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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Contacts
Todor Kitin
Senior Financial Analyst
+44 20 7397 0335
todor.kitin@ambest.com
Valeria Ermakova
Associate Director, Analytics
+44 20 7397 0269
valeria.ermakova@ambest.com
Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com
Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com
