HONG KONG, May 17 (Bernama-BUSINESS WIRE) — AM Best expects to see significant growth of captive formations in Asia-Pacific domiciles as economies grow and businesses seek new and more sophisticated ways of risk management and control.
In a new Best’s Market Segment Report, titled, “Asia-Pacific Captive Domiciles Poised for Growth,” AM Best looks at the state of Asia-Pacific captive domiciles. According to the report, captive insurer growth in the region to date has remained relatively slow, mainly due to the persistently competitive insurance market. With abundant capacity available at cheaper costs, the benefits of establishing a captive may not seem particularly attractive. A lack of knowledge and understanding about captive insurance also pervades the Asia-Pacific region. Not only is there limited information available on captive insurance and its benefits in Asia, but also there are few avenues for businesses to turn to for more information. This general lack of awareness also has contributed to the low captive insurer count in this region.