A.M. BestTV: Gulf Cooperation Council Market Experiences Range of Catastrophic Losses, Says A.M. Best Senior Director

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OLDWICK - SEPTEMBER 17, 2018 03:02 PM (EDT)
In this ^A.M.BestTV episode, Mahesh Mistry, senior director, analytics, A.M. Best, said the Gulf Cooperation Council (GCC) region, while not exceptionally prone to natural catastrophes, has seen large losses from flooding, fire and other causes. Click on http://www.ambest.com/v.asp?v=gcc818 to view the entire program.

Mistry spoke about the perception that the GCC market is generally free of natural catastrophe claims compared with other markets.

“According to the World Risk Index, the GCC countries rank among the lowest when it comes to natural catastrophe activity,” said Mistry. “That does not mean that the GCC is free from natural catastrophes. … A lot of these risks are unmodeled risks in the market, which makes it difficult to predict the expected losses that are going to arise within the GCC. The fact is the risks today are different from the risks that were perceived many, many years ago.”

Mistry also highlighted what areas insurers and reinsurers in the GCC should be focusing on in the future.

“Governance is extremely important in the region, which is why companies need to be in control of their risks and need to understand where their risks are coming from and how they are managing their risks effectively. Given the change in regulation in the markets and the more rigorous audits that are conducted by third parties in the region, A.M. Best expects companies to have further adjustments down the road, whether it is on their receivables or adjustments to the market value of their assets.”

To access a copy of this market segment report, titled, “GCC Natural Catastrophe and Man-Made Losses Highlight Importance of Enterprise Risk Management,” visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276165 .

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^A.M.BestTV covers exclusive A.M. Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^A.M.BestTV episodes at http://www.ambest.tv

A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry.