Latin America faces faster risk evolution, says MS Reinsurance

Rapid technological change, evolving climate risk and rising client expectations are redefining the insurance landscape in Latin America. Louis de Segonzac, chief underwriting officer – Americas at MS Reinsurance, explains why data, proximity to clients and long-term thinking will be critical to staying relevant in the years ahead.

“The insurance industry stands out in how profoundly it feels the impact of modern changes. From automation and AI to climate change and cybersecurity, insurers are grappling with risks that were unimaginable just a generation ago.

That is the view of Louis de Segonzac, chief underwriting officer – Americas at MS Reinsurance. He was speaking just after an event held by the firm at Miami Reinsurance Week (February 9), which featured Amy Webb, the futurist and founder / CEO of FTSG who addressed the firm’s clients and brokers on the topic of ‘The Future of Risk’. 

Close to 200 people attended the presentation, which explored how powerful macro forces, including artificial intelligence, automation, climate volatility and geopolitical instability, are converging to redefine the risk landscape for insurers.

“This was a chance for all who attended to step outside of the cyclicality of our industry. We hope clientsgained a broader, future-facing perspective that will inform strategic conversations within their own companies and with their clients to help them adapt to the changing face of risk,” Segonzac told Miami Reinsurance Week Today.

“We are going to jump generations again. New risks will develop very quickly, and potentially faster than in more mature markets.”

A changing future

Looking five to ten years ahead, Segonzac believes reinsurers will face a dual challenge. The first is the emergence of new risks driven by rapid technological change. “A lot of these risks are so new that, as an industry, we are only just starting to think about them,” he said. “But they will impact us everywhere, not just in Latin America. Amy Webb gave us all quite a bit to think about!”

He sees clear parallels with past technology adoption in the region. Limited fixed phone line infrastructure in many Latin American countries led to a rapid leap into mobile communications, effectively skipping an entire generation of technology. Segonzac expects a similar pattern to emerge with newer technologies. “We are going to jump generations again,” he said. “New risks will develop very quickly, and potentially faster than in more mature markets.”

The second challenge is how reinsurers adapt underwriting approaches to reflect that pace of change. Segonzac points to the increasing sophistication of cedants across Latin America, many of which are already using advanced tools to improve risk selection. “Some companies are extremely advanced, sometimes even more than in the US or Europe,” he said.

That progress is having a direct impact on reinsurance underwriting. Improvements in data quality at the cedant level translate into better submissions and less reliance on assumptions. “It reduces guesswork,” Segonzac said. “It allows us to tailor our response to the specific client, rather than treating everyone in a country or territory the same way.”

Perceptions must change 

Stability is often raised as a concern when discussing Latin America, but Segonzac argues the region is more resilient than it is sometimes perceived to be. While political and economic conditions can change quickly in individual countries, he notes that dealing with volatility is inherent to the role of insurers and reinsurers. “This is what we do year in, year out,” he said. “In many ways, our experience in the region makes us better prepared.”

He also stresses that strong risk management capabilities exist even in challenging environments. “In any country, including those going through instability, you have very good clients who know how to handle local conditions,” Segonzac said. That local expertise is particularly valuable when addressing climate risk, where knowledge of geography, topology and evolving flood patterns is critical.

For reinsurers seeking to stay ahead, proximity to clients is essential. “First and foremost, we need to be close to our clients,” Segonzac said. “We need open conversations and a deep understanding of what is happening locally. Knowledge is the answer.”

Technology plays a role internally as well. MS Reinsurance has been investing in a multi-year transformation programme aimed at modernising systems and improving efficiency. Segonzac highlights the development of a tool that tracks renewals from initial submission through to final placement on a single platform. “It gives us real-time visibility and eliminates double entries,” he said, allowing underwriters to focus more on analysis and client engagement.

Clients demand more

Client expectations are evolving in parallel. Buyers across Latin America are increasingly demanding faster responses, greater transparency and more tailored underwriting decisions. “They expect answers that are specific to them, not generic market solutions,” Segonzac said. As clients continue to invest in their own technology and analytics, reinsurers are expected to do the same.

Property-catastrophe remains the most significant line of business in the region, and Segonzac points to the need for continued development of modelling capabilities. “We need to analyse risk at a more granular level, not just at portfolio level,” he said. Advances in analytics and artificial intelligence are supporting that shift, particularly by enabling insights from smaller data sets.

Crucially, Segonzac does not see AI as a replacement for human expertise. “It’s about the combination of AI and human intervention,” he said. Used effectively, these tools can enhance underwriting judgment rather than replace it.

Miami Reinsurance Week provides an important opportunity to test these ideas, he believes. For Segonzac, its value lies in the conversations it enables, rather than immediate renewal activity. “It’s about understanding what’s going on in different countries and companies,” he said. “The more we interact with clients, the better positioned we are to support them.”

Louis de Segonzac is chief underwriting officer – Americas at MS Reinsurance. 

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