Latest news with #ChanyoungLee
Yahoo
3 days ago
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Stable Outlook on South Korea's Non-Life Insurance Market
HONG KONG, June 04, 2025--(BUSINESS WIRE)--AM Best has maintained its stable outlook on South Korea's non-life insurance segment, noting a continued refinement of the country's domestic solvency standards that have helped strengthen insurers' capital management. Additional factors include moderate growth in the long-term and general insurance segments, and efforts to improve profitability in the former as well as in investment strategies. However, AM Best notes an offsetting factor of slow growth prospects and weakened underwriting profitability in South Korea's auto insurance segment. According to the Best's Market Segment Report, "Market Segment Outlook: South Korea Non-Life Insurance," the country's non-life insurance industry is facing capital pressure with increasing insurance liabilities, following the Financial Supervisory Service's (FSS) push for more realistic actuarial assumptions and a phased plan to cut discount rates until 2027, which are intended to improve credibility and comparability of insurers' financials. "These ongoing regulatory changes, coupled with a decreasing trend in domestic interest rates, are expected to pose a considerable burden on insurers' solvency, especially those with relatively weaker capital positions," said Seokjae Lee, senior financial analyst, AM Best. "However, AM Best expects these changes will promote economic value-based capital management for insurers to maintain sound capital adequacy across the industry." Over the next 12 months, AM Best expects the industry to experience moderate growth with heightened emphasis on profitability management of long-term insurance following a few years of intensified market competition and with a focus on mitigating increasing solvency pressures. According to the report, the auto insurance segment has experienced a slowdown in its premium growth in recent years, owing to sluggish vehicle registrations and cumulative premium rate cuts to support the consumer economy. A notable trend is a high and increasing market concentration among large insurers. "With the fast-growing online auto insurance market, large insurers are more likely to maintain premium growth as they benefit from factors such as economies of scale, strong marketing capability and digital infrastructure," said Chanyoung Lee, director, AM Best. To access the full copy of this market segment report, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing 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 Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Seokjae LeeSenior Financial Analyst +852 2827 3407 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Chanyoung Lee Director, Analytics +852 2827 3404 Cynthia Ang Senior Industry Research Analyst +65 6303 5026
Yahoo
14-05-2025
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Stable Outlook on Japan Non-Life Insurance Segment
HONG KONG, May 14, 2025--(BUSINESS WIRE)--AM Best is maintaining a stable outlook on Japan's non-life insurance industry, citing improved profitability in the fire insurance line and heightened regulatory oversight, which is driving industry reforms. The Best's Market Segment Report, "Market Segment Outlook: Japan Non-Life Insurance", notes that Japan's Financial Services Agency has increased scrutiny of non-life insurers in the past 18 months, outlining stricter governance requirements for insurers, including stronger oversight of agency networks and eliminating improper incentives provided by insurers to distributors. While the new regulatory measures may lead to higher compliance costs for insurers in the short term, these shifts should increase transparency and foster fair market competition, as well as help insurers improve acquisition cost efficiency over the long term. The non-life industry also will see the implementation of the Insurance Capital Standard in fiscal-year 2025, whereby assets and liabilities will be measured at market value. While the new solvency regime should have a greater impact on life insurers, most Japanese non-life insurers have been preparing for this transition by augmenting their risk management frameworks over the past few years. "AM Best expects that the regulatory shift will lead to increased transparency and comparability for Japanese non-life insurers with global counterparts under similarly advanced regulatory frameworks, equipping them to navigate economic uncertainties more effectively and enrich global competitiveness over the long term," said Chanyoung Lee, director, analytics, AM Best. According to the report, Japan's non-life insurers have implemented various measures to combat significant underwriting volatility in their homeowners-related fire insurance products, given the increase in the occurrence and severity of natural catastrophes. The measures are aimed at ensuring that policies are more accurately priced according to actual risk exposure and reduce the likelihood of underwriting losses over time. Japan's interest rate environment also has become more favourable for insurers, and the paradigm shift, transitioning from a focus on deflation avoidance to inflation control, has benefited non-life insurers with substantial bond portfolios. This trend is expected to persist over the next 12 months and contribute positively to non-life insurers' investment income. Conversely, the report notes that Japan's automobile insurance segment continues to face profitability challenges. "A key issue is the persistent increase in repair costs, driven by higher prices for spare parts and rising labour costs," said Charles Chiang, senior financial analyst, AM Best. "Our analysis shows that the loss ratios of major non-life insurers have been trending upward in recent quarters." To access the full copy of this report, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Charles Chiang Senior Financial Analyst +852 2827 3427 Chanyoung Lee Director, Analytics +852 2827 3404 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Cynthia Ang Senior Industry Research Analyst +65 6303 5026 Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Stable Outlook on Japan Non-Life Insurance Segment
HONG KONG, May 14, 2025--(BUSINESS WIRE)--AM Best is maintaining a stable outlook on Japan's non-life insurance industry, citing improved profitability in the fire insurance line and heightened regulatory oversight, which is driving industry reforms. The Best's Market Segment Report, "Market Segment Outlook: Japan Non-Life Insurance", notes that Japan's Financial Services Agency has increased scrutiny of non-life insurers in the past 18 months, outlining stricter governance requirements for insurers, including stronger oversight of agency networks and eliminating improper incentives provided by insurers to distributors. While the new regulatory measures may lead to higher compliance costs for insurers in the short term, these shifts should increase transparency and foster fair market competition, as well as help insurers improve acquisition cost efficiency over the long term. The non-life industry also will see the implementation of the Insurance Capital Standard in fiscal-year 2025, whereby assets and liabilities will be measured at market value. While the new solvency regime should have a greater impact on life insurers, most Japanese non-life insurers have been preparing for this transition by augmenting their risk management frameworks over the past few years. "AM Best expects that the regulatory shift will lead to increased transparency and comparability for Japanese non-life insurers with global counterparts under similarly advanced regulatory frameworks, equipping them to navigate economic uncertainties more effectively and enrich global competitiveness over the long term," said Chanyoung Lee, director, analytics, AM Best. According to the report, Japan's non-life insurers have implemented various measures to combat significant underwriting volatility in their homeowners-related fire insurance products, given the increase in the occurrence and severity of natural catastrophes. The measures are aimed at ensuring that policies are more accurately priced according to actual risk exposure and reduce the likelihood of underwriting losses over time. Japan's interest rate environment also has become more favourable for insurers, and the paradigm shift, transitioning from a focus on deflation avoidance to inflation control, has benefited non-life insurers with substantial bond portfolios. This trend is expected to persist over the next 12 months and contribute positively to non-life insurers' investment income. Conversely, the report notes that Japan's automobile insurance segment continues to face profitability challenges. "A key issue is the persistent increase in repair costs, driven by higher prices for spare parts and rising labour costs," said Charles Chiang, senior financial analyst, AM Best. "Our analysis shows that the loss ratios of major non-life insurers have been trending upward in recent quarters." To access the full copy of this report, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Charles Chiang Senior Financial Analyst +852 2827 3427 Chanyoung Lee Director, Analytics +852 2827 3404 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Cynthia Ang Senior Industry Research Analyst +65 6303 5026 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
14-05-2025
- Business
- Business Wire
Best's Market Segment Report: AM Best Maintains Stable Outlook on Japan Non-Life Insurance Segment
HONG KONG--(BUSINESS WIRE)-- AM Best is maintaining a stable outlook on Japan's non-life insurance industry, citing improved profitability in the fire insurance line and heightened regulatory oversight, which is driving industry reforms. The Best's Market Segment Report, 'Market Segment Outlook: Japan Non-Life Insurance', notes that Japan's Financial Services Agency has increased scrutiny of non-life insurers in the past 18 months, outlining stricter governance requirements for insurers, including stronger oversight of agency networks and eliminating improper incentives provided by insurers to distributors. While the new regulatory measures may lead to higher compliance costs for insurers in the short term, these shifts should increase transparency and foster fair market competition, as well as help insurers improve acquisition cost efficiency over the long term. The non-life industry also will see the implementation of the Insurance Capital Standard in fiscal-year 2025, whereby assets and liabilities will be measured at market value. While the new solvency regime should have a greater impact on life insurers, most Japanese non-life insurers have been preparing for this transition by augmenting their risk management frameworks over the past few years. 'AM Best expects that the regulatory shift will lead to increased transparency and comparability for Japanese non-life insurers with global counterparts under similarly advanced regulatory frameworks, equipping them to navigate economic uncertainties more effectively and enrich global competitiveness over the long term,' said Chanyoung Lee, director, analytics, AM Best. According to the report, Japan's non-life insurers have implemented various measures to combat significant underwriting volatility in their homeowners-related fire insurance products, given the increase in the occurrence and severity of natural catastrophes. The measures are aimed at ensuring that policies are more accurately priced according to actual risk exposure and reduce the likelihood of underwriting losses over time. Japan's interest rate environment also has become more favourable for insurers, and the paradigm shift, transitioning from a focus on deflation avoidance to inflation control, has benefited non-life insurers with substantial bond portfolios. This trend is expected to persist over the next 12 months and contribute positively to non-life insurers' investment income. Conversely, the report notes that Japan's automobile insurance segment continues to face profitability challenges. 'A key issue is the persistent increase in repair costs, driven by higher prices for spare parts and rising labour costs,' said Charles Chiang, senior financial analyst, AM Best. 'Our analysis shows that the loss ratios of major non-life insurers have been trending upward in recent quarters.' To access the full copy of this report, please visit
Yahoo
06-04-2025
- Business
- Yahoo
Best's Commentary: Japan Insurers See Growth Through Reinsurance, Acquisitions
HONG KONG, April 06, 2025--(BUSINESS WIRE)--As Japan's insurance market has shown limited growth potential due to a shrinking and aging population, domestic companies have increasingly looked to expand overseas, as discussed in a new AM Best commentary. In its new Best's Commentary, titled, "Japan Insurers See Growth Through Reinsurance, Acquisitions," AM Best states that Japan's insurers are taking advantage of growth opportunities in international markets, particularly in the United States, Australia and other developed economies to maintain long-term growth and diversify revenue streams. "U.S. insurers owned by Japanese companies have seen growth in direct premiums written the last four years, exceeding $68 billion in 2024," said Charles Chiang, senior financial analyst, AM Best. "This trend is likely to continue in light of recent deals such as Meiji Yasuda Life's acquisition of Legal & General's U.S. business or Nippon Life's recently announced acquisition of Resolution Life." Japan's insurance industry is highly consolidated, especially in the non-life segment with a few major companies dominating the market, which limits organic growth opportunities. Additionally, asset-intensive reinsurance (AIR) transactions have been gaining momentum in Japan's life insurance segment in recent years as companies look to improve capital efficiency and for better interest rate risk management. "AM Best expects large Japanese insurers to continue seeking growth opportunities overseas, and even in non-insurance areas, supported by their strong capital," said Chanyoung Lee, director, analytics, AM Best. "Additionally, Japan's life insurers are likely to expand reinsurance transactions as a long-term capital management strategy, while major non-life insurers also are likely to have more excess capital in the coming years by divesting their strategic equity holdings." To access the full copy of this commentary, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Charles Chiang Senior Financial Analyst +852 2827 3427 Chanyoung Lee Director, Analytics +852 2827 3404 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Cynthia Ang Senior Industry Research Analyst +65 6303 5026 Sign in to access your portfolio
