Latin American insurance markets are seeing marked improvements in the regulatory arena, but challenges remain in these improving markets.
In financial lines, global rate increases in D&O and aligned capacity/rate crunches in cyber cover are beginning to bite, according to a whitepaper from New Dawn Risk.
Connecting across continents: International reinsurance solutions for Latin America, published today (July 2), highlights the interactions between Latin American markets and London, as well as the tensions that capacity and rate issues can bring.
Max Carter, CEO of New Dawn Risk, said: “Latin America is seeing growing demand for increasingly complex insurance products. One notable development has seen local brokers putting together in-country consortia to cover some larger risks, reducing their reliance on London. But the need for international cyber and financial lines cover is growing on a steady trajectory. Claims continue to spike in cyber, with ransomware being the most noted ‘problem child’, causing prices to be steeper than the broader class. These lines are seeing decreased local capacity, creating a growing need to look to London for its expertise and appetite in these areas.”
Manuel Sicard, senior broker for Latin America, commented “The link between London and Latin America is strengthening and it is now more relevant than ever to examine what each market needs to know about the other to help trade flow more smoothly. We have brought together views from Latin American experts both in-country and in London, along with our own insights as a specialist broker dealing with both regions, to publish our first Latin American market report.”