LatAm undergoing digital revolution: Argo region head

Latin America is experiencing a digital revolution and with a foothold in Miami and Brazil, Argo Group is well placed to take advantage of opportunities in the market, according to its head of Latin America.

“As the countries of the region develop into advanced, frequently service-heavy economies, and automation and digitisation transform manufacturing, there is an increasing need for sophisticated insurance products,” says Jorge Cazar of specialty re/insurer Argo.

Cazar joined Bermuda-headquartered Argo in June 2017 from Chubb Group where he served as division president of the international accident and health business.

Technology is crucial to the continued success of the re/insurance industry, he says, adding that technological innovations will bring market disruption. Because of this, Argo’s current focus is on how it can approach and leverage the disruption to its benefit.

“Latin America has the infrastructure and the ideas to create these innovative tools,” says Cazar. New players such as Argo, which come into the market with a fresh perspective, have the chance to provide innovative products and focus on growth areas, he adds.

The question remains as to how accessible these tools will be to the consumer base. For this, says Cazar, the next two to three years will be crucial.

“Business models will change, affecting not only the way we sell products but also the way we engage with our contacts. Technology will enable us to more quickly and efficiently market to and connect with our customers and brokers,” he explains.

Cazar expects new products entering the Latin American market to be a key topic for discussion—cyber risk, for instance, has already become an important talking point for insurers, brokers and insureds.

But, he warns, as the region becomes more technologically advanced, the risks that accompany advanced economies with significant tech density, such as cyber attacks, will become more evident to risk managers.

A transformational period

“The Latin America market never experiences a particularly hard or soft market and, in that sense, we see more stability here than the peaks and valleys in other markets,” says Cazar.

Aside from the technological revolution, societies and economies in Latin America are also going through a transformational period which, according to Cazar, has interesting implications for the insurance industry.

For example, the quality of insurable assets is set to increase. Compared with 15 or even 10 years ago, Latin America has an expanding and thriving middle class that has, over time, acquired a large amount of insurable personal assets, he explains.

This, in turn, has expanded the potential customer base for insurance and led to a growing need for more sophisticated insurance products.

“The challenge for Argo is to raise awareness of the value of insurance and develop products that are efficient, cost-effective and responsive to clients’ needs,” Cazar says.

Argo believes that the Latin American market is poised for growth across the board and, as a specialty player, it tries to identify niche lines and markets where it can deploy its capabilities.

“As a full suite insurer and reinsurer, our capabilities are broad—where there are profitable products to be sold, to the benefit of the local market, we will be there. With that view, we approach the region with the intention to participate in a variety of segments and geographies, with no particular markets ruled out,” he adds.

Argo also faces another challenge, declares Cazar. “As a global business, we have a well-established presence in the North American and European markets. Our challenge is how best to translate the capabilities and practices we have already developed as a corporation to the specific needs of the region,” he explains.

Cazar believes that if Argo can use its tools effectively and efficiently, it will succeed in the region and as a business.