A.M. Best has released country risk reports covering the economic and risk factors for the markets in Korea and Mexico, focusing on the insurance sectors in both countries.
The report notes that Korea has been especially hard hit by the “bursting of the technology bubble.” It suffers from bad corporate debt and “a lack of liquidity in the capital markets. Despite these problems and the continued need for strong regulation, Best’s report concluded that the Korean market was still attractive as the market changes and previous reforms are implemented.
“Korea’s insurance market is experiencing a major transformation as it responds to reforms, which are driving consolidation and creating a more competitive market for both domestic and foreign insurers seeking to gain and maintain market share,” said the report. It also notes that Korea’s insurance market is the second largest in the region.
Mexico is the second largest insurance market in Latin America, and according to Best’s report, “promises strong stable long-term growth, in spite of short term challenges in its economy and the rebuilding of its infrastructure.” Other factors noted in the report are the county’s close ties to the U.S. market, and the effects of the slowdown in the U.S. and global economy.
The full reports can be accessed through A.M. Best’s website at : http://www.ambest.com/ratings/cr/korea.pdf, and http://www.ambest.com/ratings/cr/cr1001mexico.pdf.
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