Thursday, October 19, 2017

ASEAN integration to benefit industry

According to a recent report released by US-based rating agency A.M. Best, Asia’s insurance industry stands to benefit from the planned integration of countries comprising the Association of Southeast Asia Nations (ASEAN).

Under the proposed arrangements for the ASEAN Economic Community (AEC), there will be a free flow of services, including those from the financial sector between all member nations.

This will mean that insurers will be able to build a commercial presence and sell products on a more regional basis as professionals will be allowed to move from one ASEAN country to another, the report said.

The AEC blueprint has identified insurance sub-sectors for liberalisation by 2015.

Currently, Indonesia and the Philippines have committed to opening their markets for life, non-life, reinsurance, intermediation and auxiliary services.

While the report said that the AEC may lean too much of an advantage toward larger and financially stronger foreign players, on the whole, A.M. Best said ASEAN integration will benefit the insurance industry.

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