AM Best has released a new Country Risk Assessment Report on Iraq, which provides an economic, political and financial system risk assessment on the country.
With the new assessment on Iraq, AM Best now has produced country risk reports on 138 countries. AM Best determines country risk levels by assessing country-specific factors that could adversely affect an insurer’s ability to meet its financial obligations. Country risk is evaluated and factored into all AM Best ratings. As part of evaluating country risk, AM Best identifies the various factors within a country that may directly or indirectly affect an insurance company. Countries are placed into one of five tiers, ranging from CRT-1 (Country Risk Tier 1) – denoting a stable environment with the least amount of risk – to CRT-5 (Country Risk Tier 5) – for countries that pose the most risk, and therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
The Country Risk Tier of CRT-5 for Iraq reflects a very high level of economic, political and financial system risk.
Country risk is incorporated into the analysis of balance sheet strength, operating performance, and the business profile of all rating units. Analysis is done on each rating unit’s country of domicile as well as country of operations (regulation, asset, and insurance exposure). Please visit AM Best’s Country Risk center for the complete listing of Country Risk Tiers and country-specific reports.