Best's Commentary: Heightened Political Tension in West Africa Likely to Have Limited Impact on (Re)Insurance Markets

The potential withdrawal of Niger, Mali and Burkina Faso from the Economic Community of West African States is the latest sign of political turmoil in the region but should have relatively little impact on those countries’ insurance markets for now, according to AM Best analysts studying the region’s trends.

The Best’s Commentary, “Impact on (Re)Insurance Markets Likely Limited Amid Heightened Political Tension in West Africa,” notes that while insurance penetration in the three countries remains low, there is solid demand for reinsurance for larger commercial risks, including retrocession into international markets, and that commercial relationships between domestic insurers and regional reinsurers are likely to persist.

However, departure from the Conférence Interafricaine des Marchés d’Assurances (CIMA) community could have regulatory implications for those countries’ (re)insurers, and AM Best analysts will continue to monitor developments.

To access a complimentary copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=340662.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising 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 www.ambest.com.

Copyright © 2024 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240222989461/en/