Monday, October 9, 2023

AM BEST RESPONDS FAQ ON NATIONAL SCALE RATINGS



KUALA LUMPUR, Oct 10 (Bernama) -- A new Best’s Commentary has addressed frequently asked questions (FAQ) about Best’s National Scale Ratings (NSR) and how they compare with global Best’s Credit Ratings.

Global credit rating agency, AM Best in a statement said an NSR is a relative measure of the financial strength of insurers and reinsurers that are domiciled in the same country.

The NSR focuses on local insurance market characteristics and allows for a more appropriate comparison among domestic market participants, which over time should allow for greater differentiation among them.

AM Best currently assigns NSRs in Egypt, India, Indonesia, Mexico, the Philippines and Vietnam.

The commentary also addressed other issues such as when an NSR can be assigned; how NSRs are mapped from Best’s Issuer Credit Ratings; and whether country risk can influence an NSR.

Headquartered in the United States, AM Best does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

-- BERNAMA

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