Natural catastrophes a key focus for Chaucer

The severe El Nino effect expected next year presents a challenge for re/insurers, according to Edward Lines, deputy head of underwriting and property D&F division head for Chaucer, and Uwe Fischer, general manager, Chaucer Latin America.

“It traditionally leads to heavy rainfall in Ecuador and Peru and often flooding, and the next El Nino is expected to be one of the worst in recent years,” said Lines.

“We actively manage our risks in these areas, analyzing our flood exposures to make sure that the appropriate protection is in place or that our clients have less risk in these areas.

Chaucer has cemented its commitment to the Latin America region by opening an office in Argentina in 2010, which then moved to Miami this year to take advantage of a stronger economic and political environment.

Chaucer’s move to establish itself solidly in the region has helped Chaucer access business that would not go to London, and has helped it to expand its lines of business in the region.

“Latin America offers a lot of opportunities because the insurance penetration continues to be low compared to other countries,” said Fischer. “One of the challenges is that most countries are very exposed to natural catastrophes. This creates an important need, but on the other hand, there is excess of capacity around and the rates are very low now. Even with events such as the Chilean earthquake in 2010, the impact on rates was less than expected.”