KUALA LUMPUR, Oct 26 (Bernama) -- Government intervention and regulatory support can influence the development of insurance and reinsurance markets but the actual impact varies across markets in Asia, according to Best’s Special Report.
The report -- “Impact of Government and Regulatory Support for Local Reinsurers Varies in Asian Markets” -- stated that the desire to support social stability with a greater level of fiscal certainty is one key motivation for using (re)insurance as a policy tool.
“The impact of government initiatives can vary significantly by country and over time,” A.M. Best -- a global rating agency and information provider with a unique focus on the insurance industry – said in a statement.
The report stated government intervention does accelerate premium growth and it needs to be matched by strengthened enterprise risk management capabilities or else there could be a higher risk of earnings and capital volatility.
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