AM Best Publishes Comprehensive Review of Asia-Pacific Insurance Markets; Report Highlights Country Risk Factors, Benchmarking Analysis

Business Wire

SINGAPORE--(BUSINESS WIRE)--
As part of its participation at the 2025 Singapore International Reinsurance Conference (SIRC), AM Best has made available for the first time analyses of 16 countries in the Asia-Pacific region, encompassing markets with varying degrees of development and growth potential.

Available in one comprehensive volume, featuring exclusive content on seven countries in South/Southeast Asia, seven in Northeast Asia and two in Oceania, AM Best’s in-depth analysis spotlights the implied levels of economic, political and financial system risks in each of these insurance markets. These country-risk factors are considered in AM Best’s rating process, incorporating the country-specific factors that could adversely affect an insurer’s ability to meet its financial obligations. An insurer’s ability to address, manage and mitigate its exposures to country risk is determined on a case-by-case basis and incorporated into the analysis of balance sheet strength, operating performance and business profile.

“AM Best does not place a cap on an insurer’s credit rating based on the sovereign credit rating of the company’s country of domicile or to which it is materially exposed,” said Rob Curtis, managing director and chief executive officer of AM Best’s Singapore operations. “AM Best is of the view that an insurer can be more financially secure than the government of the country of domicile and have the ability to manage its country risk effectively; for example, by measures such as additional capital buffers, strong underwriting discipline or portfolio diversification.”

The report also provides an update on the current state of each country’s insurance market, regulatory and risk developments and natural catastrophe and climate risks.

“Overall, the Asia-Pacific region’s insurers remain strong, reflected in steady growth across various markets, with additional capacity and opportunities for further expansion projected in the coming years,” said Curtis. “Although some countries face challenges, the insurance sector is on a robust growth trajectory, achieved through positive industry-wide regulatory developments and improving market practices.”

In addition to this country-specific analysis, the report highlights benchmarking analysis on AM Best-rated companies. The types of companies rated, operating in mature and emerging markets, are diverse and include reinsurers, insurers, mutuals, captives, credit and health insurers, and protection and indemnity (P&I) clubs. In addition to this benchmarking report, an overview of the Performance Assessment for Delegated Underwriting Authority Enterprises (DUAEs), which include managing general agents, coverholders and other similar entities, is included as well.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=359542.

AM Best will hold its annual insurance market briefing, open to conference delegates with full passes, at the 21st annual SIRC event on Tuesday, 4 November 2025, to discuss trends and developments affecting Asia-Pacific (re)insurance markets. The briefing will take place at 4:00 p.m. (SGT) in the Heliconia Main Ballroom of the Marina Bay Sands Expo and Convention Centre, the same location as the conference. As part of the briefing, senior AM Best analysts will conduct a live mock rating committee presentation to give attendees a better understanding of the drivers behind rating decisions. For more information, please visit www.ambest.com/conference/SIRC2025. A cocktail reception will then follow the market briefing. All participants are welcome.

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.