Look at challenges as opportunities: Bruno Krenboeck, Axis Re
Reinsurers in Latin America face many challenges, but the best companies will turn these into opportunities and ultimately thrive, says Bruno Krenboeck of Axis Re.
“Micro-insurance and public-private partnerships are important drivers to boost the still low insurance penetration.”
Political and economic uncertainty, protection gaps, climate change, and emerging risks such as cyber threats, regulatory changes, and excess capital are just some of the many challenges reinsurers face in Latin America.
But, as Bruno Krenboeck, marketing director for Latin America at Axis Re, told FIDES Today, each of these challenges is ultimately linked with opportunities for the re/insurance sector.
“The protection gap is an important issue and a big topic in Latin America—it has once again become very visible following the recent catastrophe events,” says Krenboeck.
“Micro-insurance and public-private partnerships are important drivers to boost the still low insurance penetration in the Latin America region.”
Considering the low insurance penetration across the Latin American market, the long-term growth outline remains positive, with continuous market consolidation, multinational and regional players enlarging their footprint in the region and overall cessions remaining stable, he explains.
“Although there are signs of a hardening market, there is still abundant re/insurance capacity available. In this complex environment, it will be important for Axis Re to write a well-diversified treaty portfolio with a select number of clients and brokers across the region,” says Krenboeck.
On the treaty side, Axis Re is seeking profitable growth across all lines of business with its key client and broker partners in the Latin American region.
On the facultative side, the reinsurer sees opportunities in emerging areas such as cyber and renewable energy, areas in which Axis has global expertise, according to Krenboeck.
Plenty of prospects
Axis Re is committed to, and actively investing in, the Latin American market where it sees an abundance of opportunities.
“We expect most insurance growth in the member countries of the Latin American trade bloc Pacific Alliance (Chile, Peru, Colombia, and Mexico) which requires significant reinsurance backing for property cat, engineering, surety, agriculture, and life and health,” he says.
The reinsurer has been in Latin America for more than a decade, and continues to make investments to grow its multiline presence. This includes the opening of a Miami office to expand its facultative service.
“Latin America is a core part of our short and long-term growth strategy,” Krenboeck notes, with the company focused on building deep relationships with local partners and sharing its own expertise and knowledge.
Bruno Krenboeck is marketing director for Latin America at Axis Re. He can be contacted at: bruno.krenboeck@axiscapital.com
