LONDON--(BUSINESS WIRE)--AM Best has made available a presentation on the significance of insurance ratings and their implications on the global insurance market. The presentation was delivered as part of a seminar organized by the Organization of Eastern and Southern Africa Insurers (OESAI), which aimed to provide insurance professionals in the region with a deeper understanding of the rating process, factors influencing ratings and how these evaluations can affect insurance companies’ operations.
Tim Prince, director of analytics, and Kanika Thukral, associate director, both of AM Best, led the presentation, and highlighted that as a global credit rating agency, AM Best assesses a company's ability to meet its policyholders' obligations, rather than focusing solely on the sovereign rating of the country where it is domiciled. Sovereign ceilings, which require that ratings remain at or below the sovereign rating of a company’s country of domicile, are not applied in AM Best’s rating process, as an insurer can be more financially secure than the government of the country in which it is domiciled and manage its country risk effectively.
“Sovereign risk is included within our assessment of country risk, but it does not limit a company's ratings,” Prince said. “Our rating process evaluates the long-term performance and future trends."
The presentation also focused on specifics of the rating process, including an expected timeline, as well as components of AM Best's rating model, which includes quantitative and qualitative evaluations of balance sheet strength, operating performance, business profile and enterprise risk management. Dr Edem Kuenyehia, AM Best’s market development director for Africa, moderated the discussion. In his introductory remarks, he spoke about the company’s purpose and how it aligned with the interests of stakeholders in the insurance ecosystem for a stronger, more successful industry.
To view the presentation, please visit http://amb.brightcovegallery.com/oesai23.
OESAI is a member-based insurance organisation, focused on training, education, product development and the sharing of prudent and innovative risk management practices within Eastern and Southern Africa. The organization is celebrating its 50th anniversary this year and will be holding its 45th annual conference in Mauritius beginning on 27 August, with a focus on financial inclusion. To learn more about OESAI, please visit https://conference.oesai.org/.
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.
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