![\"am-best-logo\"](\"https:\/\/beijingcareer.com\/wp-content\/uploads\/2025\/04\/am-best-logo.png\"){kind=logo}
The rating agency noted that the withdrawal of Russian capacity following the imposition of economic sanctions in 2022 created a gap in the market that local carriers have been looking to capitalise on.<\/p>\nCentral and West Asian insurers are increasingly turning to international reinsurance business as they seek to diversify their domestic books and establish a presence in foreign markets\u2014though this approach carries substantial risks, according to a recent report by AM Best.<\/p>\n
The rating agency noted that the withdrawal of Russian capacity following the imposition of economic sanctions in 2022 created a gap in the market that local carriers have been looking to capitalise on.<\/p>\n
At the same time, the rising frequency and severity of weather-related losses in the region have added pressure on regional insurers\u2019 profit margins and reduced the attractiveness of these markets. In response, some reinsurers have scaled back their exposure, further limiting the availability of reinsurance capacity.<\/p>\n
AM Best observed that the operating environment in most Central and West Asian insurance markets remains highly competitive, with a small market size and a growing number of insurers chasing a small premium base.<\/p>\n
This has constrained opportunities for domestic organic growth, prompting more primary insurers to seek international reinsurance business as a means of diversification and expansion.<\/p>\n
However, AM Best warned that as carriers grow their inwards reinsurance books\u2014both domestically and internationally\u2014they face a number of risks.<\/p>\n Many regional insurers new to the reinsurance segment may lack sufficient understanding and appropriate underwriting capabilities, including the ability to set rates, draft policy wording, or define coverage terms and limits. This could impact price setting, policy language, and cover terms and limits on foreign business.<\/p>\n Further challenges include high acquisition costs associated with binding international risks and potential impacts on insurers\u2019 balance sheets.<\/p>\n \u201cThis could be beneficial for the carriers\u2019 overall market profiles should they successfully achieve profitable growth,\u201d said Todor Kitin, senior financial analyst at AM Best. \u201cBut also poses substantial risks for those insurers that lack appropriate expertise or knowledge in the segment or market into which they are expanding.\u201d<\/p>\n The post Central & West Asian insurers turn to international reinsurance amid risks: AM Best<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Central and West Asian insurers are increasingly turning to international reinsurance business as they seek to diversify their domestic books and establish a presence in foreign markets\u2014though this approach carries substantial risks, according to a recent report by AM Best. The rating agency noted that the withdrawal of Russian capacity following the imposition of economic […]<\/p>\n","protected":false},"author":1,"featured_media":930,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/928"}],"collection":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/comments?post=928"}],"version-history":[{"count":3,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/928\/revisions"}],"predecessor-version":[{"id":932,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/posts\/928\/revisions\/932"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/media\/930"}],"wp:attachment":[{"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/media?parent=928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/categories?post=928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beijingcareer.com\/index.php\/wp-json\/wp\/v2\/tags?post=928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Download](\"https:\/\/beijingcareer.com\/wp-content\/uploads\/2025\/04\/catastrophe-bond-ils-market-report-q1-2025-728x90-2.png\")
<\/a><\/p>\n<\/div>\n