A special report from A.M. Best analyzes the “reduced frequency of large-scale catastrophes through November 2012, which, Best said, has “helped Asia-Pacific non-life insurers to slowly recover from losses inflicted by natural disasters in 2011.
Best’s report points out that the “unprecedented severity of the 2011 disasters significantly eroded underwriting performance for domestic and regional insurers carrying offshore business, and changed practices both locally and internationally.
“Meanwhile, low interest rates give little boost to overall earnings and financial strength. Across the region, evolving regulation generally increases emphasis on insurers’ balance sheet strength, exacerbating already difficult operating conditions.”
The report covers a number of markets in Asia.
Source: A.M. Best