In highly exposed areas, insurance is an important tool to strengthen the resilience of emerging economies when dealing with catastrophic risk, says Alfredo Castelo, CEO of Mapfre Global Risks.
The recent increased intensity of cat events, mainly due to the effect of the El Niño phenomenon, is one of the major challenges facing the Latin American markets, says Cristian Velasco, general manager of THB Chile Re.
Government efforts to counter the effects of declining oil prices by raising taxes for re/insurers will be a significant theme in the LatAm region over the coming year. That is the view of Daniel Duesterhaus, general manager for Central and South America at Hannover Re.
Emerging liability requirements as a result of international investors’ involvement in many of the large Latin American businesses is accelerating claims consciousness in the region, says John Blake, managing partner of Hemispheric Reinsurance Group.
Chile has gone through a process of cultural change in order to become one of Latin America’s most sophisticated insurance markets, according to the chief executive of one of the country’s leading insurers.
A focus on innovation and expansion in segments such as microinsurance and other mass-market products are the keys for growth at Nacional Vida, one of Bolivia’s largest insurance companies, according to its president Jose Luis Camacho.
A key to success in Latin America is recognising that it is a very diverse region with varying cultures, says Louis de Segonzac, head of Amlin’s Latin American business.
One of the key challenges presented by the Latin American market is the increase in local market appetite and capacity for risks that were traditionally coming through to Lloyd’s in London. That is the view of Rupert Taylor, head of general liability and multi-line product development for Marketform.
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.
Most countries are experiencing a longevity revolution, says Lucie Taleyson, head of the actuarial and marketing department of AXA Group Life Solutions within AXA France – and countries in Latin America need to plan accordingly.