Energy sector suffering while construction, aviation and marine buoyant

One of the most challenging areas for re/insurance at present in Latin America is around major energy projects because the price of oil has made a number of these less viable, says Mike Methley, CEO of JLT Latin America. However, construction, aviation and marine are growing very strongly, he added.

“The life and health market is underpinned by medical inflation in all countries but the rising affluence, demographic change and expanding middle classes mean that affordable healthcare is a much bigger insurance decision than it ever has been,” he continued.

He said that the low levels of penetration in the region, coupled with the expanding middle classes, means that a major opportunity—and challenge—is reaching out and finding new customers, managing them in an effective way and using privileged customer channels to distribute insurance.

“This is a huge market for us,” Methley said.

JLT’s business in Latin America is structured along four main lines: specialty insurance, reinsurance, employee benefits healthcare, and affinity.

“All of those have good underlying growth opportunities,” he said.

Over the coming year he expects mergers and acquisitions to continue to be a key theme in the region, as they are globally.

“With Grupo Sura’s acquisition of RSA we’re seeing the emergence of the first truly regional Latin American carrier. That’s an interesting development,” he said.

“I think over time we’re going to see a lot more capacity in the region than we ever have done, along with international players who want to get a market share moving into the region or moving into Miami.”

One of the most challenging areas for re/insurance at present in Latin America is around major energy projects because the price of oil has made a number of these less viable, says Mike Methley, CEO of JLT Latin America. However, construction, aviation and marine are growing very strongly, he added.

“The life and health market is underpinned by medical inflation in all countries but the rising affluence, demographic change and expanding middle classes mean that affordable healthcare is a much bigger insurance decision than it ever has been,” he continued.

He said that the low levels of penetration in the region, coupled with the expanding middle classes, means that a major opportunity—and challenge—is reaching out and finding new customers, managing them in an effective way and using privileged customer channels to distribute insurance.

“This is a huge market for us,” Methley said.

JLT’s business in Latin America is structured along four main lines: specialty insurance, reinsurance, employee benefits healthcare, and affinity.

“All of those have good underlying growth opportunities,” he said.

Over the coming year he expects mergers and acquisitions to continue to be a key theme in the region, as they are globally.

“With Grupo Sura’s acquisition of RSA we’re seeing the emergence of the first truly regional Latin American carrier. That’s an interesting development,” he said.

“I think over time we’re going to see a lot more capacity in the region than we ever have done, along with international players who want to get a market share moving into the region or moving into Miami.”