LSM plans to enhance presence in LatAm as competitors leave
There are no plans for Liberty Specialty Markets (LSM) to withdraw from any of the Latin American territories in which it works, unlike some of its competitors which “are revising their strategy by exiting markets or closing representative offices”.
The company is also prepared to enhance its presence in the major markets, in terms of premium volume and profitability, according to Miguel Martinez, head of business development for reinsurance for LSM.
“We believe in long term commitment and are showing this through the continuation of our operations in the region and the increased investment we are making.”
On the re/insurance market, Martinez added: “Latin America is a massive, cultural, economic and politically diversified region. This diversity also applies to the re/insurance markets with different exposures and classes according to territory.”
And while some large insurers are revising their strategy, smaller more specialised players have shown increased interest in the region, according to the business development head.
“When the Brazilian market opened, for instance, there was extreme competition but that has subsequently slowed due to poor results over the years and consolidation in the industry,” he explained.
LSM has been present in Latin America for several years, with offices in Colombia and Brazil.
Martinez explained that since the company opened its office in Brazil, the economic conditions in the region have undergone a lot of change.
“The re/insurance market has been under pressure with decreasing terms and conditions and some consolidation in the markets,” he explained.
In Brazil and Colombia, LSM is investing in additional resources to enhance its operations and has revised its risk appetite and internal underwriting processes.
In September, LSM created a new regional manager role in Latin America, aligning its treaty reinsurance operations across all territories. The regional manager, José Ernesto Ospina, is based in Colombia.
“Having a local highly qualified and experienced presence greatly increases our understanding of our clients and allows us to provide the service, knowledge and expertise they need,” concluded Martinez.
Sign up to our free email newsletters
More storeis from the FIDES Day One Newsletter
Without regulatory pressure reinsurance comes down to price
Digital transformation offers great opportunities in LatAm
A bright outlook for LatAm despite risks
Navigating the post-HIMM pricing structure: XL Catlin
Capacity and creative contracts can close protection gap
Alternative capital keeps growing
Former Lloyd’s Mexico manager outlines tech benefits
How some reinsurers stand apart
TMK ready to take advantage of recovering Brazil
Political situation and new players pose challenges
RTS efforts crucial in saving hundreds of millions in Guatapé
LatAm and an evolving marine market
Success factors in disability scheme management: lessons for LatAm
