Kathmandu. AM Best expects strong growth in the Asia Pacific region, owing to low insurance penetration, regulatory modernization, and growing market opportunities.
Speaking at the 21st Singapore International Reinsurance Conference, Rob Curtis, Managing Director and CEO of AM Best’s Asia Pacific region, said the Asia Pacific region is one of the world’s most promising regions for insurance growth, supported by a young population and significant untapped market potential. The Asia Pacific Insurance Market report covers 16 countries. The report also examines economic, political and financial system risks, as well as performance evaluations of Delegated Underwriting Authority Enterprises (DUEs) and Managing General Agents (MGAs).
According to Curtis, regulatory changes are shaping the insurance industry, particularly due to the implementation of risk-based capital structures and its own risk and resolution assessment (ORSA) requirements. “This is providing a real impetus to regulatory developments in the Asia-Pacific region,” Curtis said, adding that it provides a better analysis of risk and capital than ever before in many markets in the Asia-Pacific region. This is an important development that we are seeing. ’
Curtis said some markets, such as Australia, were now requiring formal evaluations of service providers, including the UAE and MGA. “This creates new opportunities for these companies,” he said.
DUE and MGA play a major role in providing additional market potential. “This is a very new development that’s now being implemented in Australia,” he added. Fortunately, our performance appraisal for DUE can help in this regard. ’
