International Market Evaluation Political and Legal Environment Comparison: Canada vs. Australia

Both Canada and Australia are reported to have a 'Country Risk Tier (CRT)' that reflects "A.M. Best's assessment of three categories of risk: Economic, Political and Financial System Risk stated in the case of Canada and Australia to be CRT-1 classification which is characterized by "very low levels of economic, political and financial system risk." (AMB Country Risk Report, 2010) The economic risk in Canada is reported to be 'very low' and the political risk in Canada is also stated at very low since Canada is a "high income country with significant natural resources and an established legal system." (AMB Country Risk Report, 2010) The economy of Canada is directly impacted by the U.S. financial system. The budget of Canada is reported to have moved "into deficit as the government has used fiscal policy to help stimulate the economy." (AMB Country Risk Report, 2010) The Risk in Canada's Financial System is reported as being 'very low" as: (1) Insurance companies in Canada can be licensed at a national and/or provincial level; (2) Federal companies are registered under the Insurance Companies Act of Canada and are regulated by the Office of the Superintendent of Financial Institutions of Canada." (Country Risk Report, 2010) The country of Australia is reported to reflect, as does Canada, "…A.M. Best's assessment of three categories of risk: Economic, Political and Financial System Risk. Australia is a CRT-1 country with very low levels of economic, political and financial system...

(AMB Country Risk Report, 2010) Primary exports for Australia include the following the exports primarily stated as: (1) Ores and metals, wool, food, live animals, fuels as well as transport machinery and equipment; (2) The economy of Australia was one of the first to recover from the global slowdown and to tighten monetary policy. (AMB Country Risk Report, 2010) It is reported that economic risk in Australia is very low and the legal system of Australia is very strong and stable and contains only minimal corruption." (AMB Country Risk Report, 2010) The World Bank reports that the business environment in Australia is reported to be "…among the world's top ten." (AMB Country Risk Report, 2010) The regulatory authorities for the Australian insurance industry in Australia are those of: (1) The Australia Prudential Regulation Authority (ARPA); and (2) The Australian Securities and Investment Commission (ASIC). The entire financial services industry in Australia is said to be…