[ad_1]
MEXICO CITY–(BUSINESS WIRE)–Reinsurers operating in Latin America continue to benefit from GDP growth in the region, even as the impact of Hurricane Otis in 2023 highlights the need for greater capacity, according to a new report from Mexico City. optimal.
he Best Market Segment Report“Latin American Reinsurers Benefit from GDP Growth” is part of AM Best’s analysis of the global reinsurance industry ahead of the Rendez-Vous conference in Monte Carlo in September. Other reports, including AM Best’s ranking of the world’s leading reinsurance groups and in-depth analysis of the insurance-linked securities, Lloyd’s, life/annuity, health and regional reinsurance markets, will be published throughout August and September.
The report states that reinsurers continue to support primary insurers in the first half of 2024. Some global players with operations in Latin America have changed their risk appetite due to global orders or general risk aversion. Most of the shortfall in contract placements has been made up by other large international players or regional reinsurers. In some cases, project placements have not reached 100%.
“The reinsurance renewal experience in Latin America has been mixed but has mainly favored primary insurers with more comprehensive integrated risk management capabilities, who have better claims experience, allowing them to negotiate reinsurance treaties more effectively,” said Elí Sánchez, director of analytics at AM Best. “Renewal activity has been impacted by major events in the region, such as flooding in Brazil and the aftermath of Hurricane Otis in Mexico.”
The report states that the use of managing general agents (MGAs) is growing in popularity, both to provide additional capacity to the Latin American market and to assume risk for offshore regional reinsurers. As the global interest rate environment continues to decline, the region’s attractiveness is likely to generate greater demand for Duae firms.
In Brazil, domestic reinsurers that assume international catastrophe risk have cut property catastrophe exposure in line with global trends. However, their actions have not yet translated into significant underwriting profitability advantages or capacity growth. National reinsurers are focusing on specialized sectors such as surety bonds, automotive, transportation and agriculture because they represent growth opportunities.
“The increasing volume of premiums ceded to local reinsurers (to grow 8.9% in 2023) reflects the maturity of the insurance market,” said Ricardo Rodríguez Pérez, financial analyst at AM Best. “Pricing remains favorable, helped by a complex global reinsurance market.”
To obtain a full copy of this segment report, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=345889.
A video discussion of the report is also available at http://www.ambest.com/v.asp?v=ambgrlatamspanish824.
To view a report on the future of global reinsurance ahead of the September conference, visit Best Research.
AM Best is a global credit rating agency, news and data provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, www.ambest.com.
Copyright © 2024 AM Best Rating Services, Inc. and/or its affiliates.
all rights reserved.
The original source language text of this statement is the official authorized version. Translations are provided only as adaptations and must be checked against the source language text, which is the only legally binding version.
Contact Details
Eli Sanchez
Director of Analytics
+52 55 9085 7503
(email protected)
Ricardo Rodriguez Perez
Financial Analyst
+52 55 9085 2708
(email protected)
Christopher Sharkey
Deputy Director of Public Relations
+1 908 882 2310
(email protected)
Al Slavin
Senior Public Relations Strategist
+1 908 882 2318
(email protected)
[ad_2]
Source link
