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While reasons for it may differ, Brazil, Colombia and Argentina are among top growth locations for re/insurance in Latin America. Intelligent Insurer reports.
In Brazil, further liberalisation of the reinsurance market offers growth opportunities for the sector. Brazil’s state-controlled IRB-Brasil Resseguros (IRB) had a monopoly over the Brazilian reinsurance market until 2007, when Congress ‘opened’ the market to international reinsurers, classifying the IRB as a local reinsurer, law firm Holman Fenwick Willan (HFW) says in a report titled Brazilian Regulatory Changes good for International Reinsurers. But the market liberalisation continues.
Under legislation passed in 2015, Brazil has now in place a five-year time frame for scaling down the intra-group prohibition and the mandatory cession rule.
According to the legislation, the maximum limit for intra-group transfers, namely from an insurer or local reinsurer to a company belonging to the same financial conglomerate, will gradually be increased to 75 percent by 2020 from 20 percent, HFW explains.
Latin America, M&A, Insurance, Reinsurance, Regulation, Brazil, Argentina, Markel, Holman Fenwick Willan, Carlos Caputo, Hernán Cipriotti, Daniel