OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Catherine Thomas, senior director, analytics, A.M. Best, reviews a new report that examines how requiring or encouraging insurers to cede reinsurance risks locally can limit global reinsurers’ abilities to diversify and increase risk aggregation. Click on http://www.ambest.com/v.asp?v=protectionism1217 to view the entire program.
Regulators around the world have been focusing on retaining insurance premium in domestic markets.
“Protectionism for multinational insurers can create barriers to trade and market access issues,” said Thomas. “Measures have been put in place that favor domestic carriers. … For multinational insurers, such measures can restrict their growth, and for the domestic market, can lead to risk concentrations.”
Thomas also addressed how companies are impacted from a ratings perspective.
“For multinational insurers, if in a particular market there are measures in place that favor domestic carriers, then they will be disadvantaged. For the domestic market, if they are unable to access global reinsurers, this may adversely affect their ability to manage their risk, particularly if they are operating in markets that are exposed to catastrophes or pandemics,” she said.
To access the Best’s Special Report, titled, “Rising Protectionism Creates Market Access Issues for Multinational Insurers,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=267533.
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