“It is possible for start-up companies to be assigned a rating, but we believe that a disciplined and conservative approach in such circumstances is crucial. The outlook for the insurance market is very upbeat. Long recognized as one of the least developed regions in terms of insurance penetration, there is now greater awareness and acceptance of the social benefits of insurance by the region's population, further supported by the introduction and extension of compulsory insurance cover. Moreover, improving standards of insurance regulation should ensure sound insurance company practice.”
“For start-ups, the main challenge is the lack of track record. But with many regulators in the region citing a Standard & Poor's rating as part of their security measures, there is an increasing incentive for companies to embark on the rating process and show that they are in the investment-grade range of 'BBB-' or above.”
