SINGAPORE, May 3 (Bernama-BUSINESS WIRE) — Concerns over the actual and prospective solvency levels at what was recently Indonesia’s largest domestic reinsurer has limited its ability to write new business and prompted cedants to place coverage elsewhere during the 1 January 2023 renewals, according to a new AM Best commentary.
The Best’s Commentary, “Indonesian Market Hampered by Weakened Domestic Reinsurer Solvency,” notes that thinning capital buffers among Indonesia’s domestic reinsurers leaves them facing the challenge of withstanding further balance sheet shocks amid the increased likelihood for near-term economic uncertainties and unexpected catastrophe events.