A reduction in the provision of globally sourced reinsurance capacity to markets in Central and West Asia has prompted some domestic insurers to step up to try to fill the gap, according to a new report released by AM Best.

In its new Best’s Market Segment Report, “Riskier Exposures for Central and West Asian Insurers as They Turn to Reinsurance to Drive Overseas Growth,” AM Best notes that the withdrawal of Russian capacity following the imposition of economic sanctions in 2022 created a gap in the market upon which other local carriers have been looking to capitalise.

The report also states that the operating environment in most of these markets remains highly competitive. This limits the ability to achieve domestic organic growth, with primary insurance companies in the region increasingly turning to international reinsurance business as they seek to diversify their existing domestic books of business and establish a presence in foreign markets.

“This could be beneficial for the carriers’ overall market profiles should they successfully achieve profitable growth,” said Todor Kitin, senior financial analyst at AM Best. “But also poses substantial risks for those insurers that lack appropriate expertise or knowledge in the segment or market into which they are expanding.”

To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=353044.

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250416966548/en/

Todor Kitin
Senior Financial Analyst
+44 20 7397 0335
todor.kitin@ambest.com

Valeria Ermakova
Associate Director, Analytics
+44 20 7397 0269
valeria.ermakova@ambest.com

Richard Banks
Director, Industry Research – EMEA
+44 20 7397 0322
richard.banks@ambest.com

Edem Kuenyehia
Director, Market Development & Communications
+44 20 7397 0280
edem.kuenyehia@ambest.com

Logo

Tags

More Like This

Best’s Market Segment Report: AM Best Revises Outlook for Global Reinsurance Industry to Positive

Best’s Market Segment Report: AM Best Maintains Stable Outlook on Global Reinsurance Industry

Best’s Market Segment Report: Strong Technical Profits Bolster Momentum for Global Reinsurers

AM Best Publishes Annual Review of Global Reinsurance Industry; Analysis Highlights Companies’ Favorable Results, Financial Reporting Shifts

Best’s Market Segment Report: AM Best Maintains Outlook for Global Reinsurance Industry to Positive

Best’s Special Report: EMEA Benchmarking Shows Early Signs That Insurance Market is Stabilising Amid Uncertain Geopolitical Environment

Best's Market Segment Report: AM Best Revises Outlook on London Market Insurance Segment to Positive

Best's Market Segment Report: Europe’s Big Four Reinsurers Continue to Benefit From Hard Market Conditions