SINGAPORE--(BUSINESS WIRE)--Insurers in the non-life markets across Southeast Asia are becoming more aware that they need to develop new sources of growth through introducing new lines of business beyond the traditional commercial fire and motor insurance products. As economic growth spreads into more segments of society, further insurance industry growth may require the development of non-motor personal lines and small business lines, according to an A.M. Best special report.
The Best’s Special Report, titled, “Non-Motor Personal Lines Growth in Southeast Asia Could Provide Opportunities To Reinsurers,” notes that the regional insurers’ need for support during the early stages of new product launches, provides reinsurers that have relevant capabilities with an opportunity to position themselves as growth facilitators and innovators.
Multiple factors are pushing insurers to look beyond motor and commercial fire, including sluggish to declining sales in major motor vehicle markets such as Indonesia, Thailand, and Malaysia. This has weakened a primary source of premiums in these markets and is increasing pressure on thin profit margins.
A.M. Best believes these reinsurers will need to demonstrate the ability to keep innovating efficiently and to manage concentrations, as the cedants likely will reduce cessions as they become more familiar and comfortable with the new products.
To access a copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=257262.
A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.