Notes increase in regulatory activity to support the insurance and reinsurance markets
Latin America’s growing economies and the resulting decline in poverty are creating increased demand for insurance and reinsurance products and services, according to a new report from AM Best.
That aspect, combined with relatively low investment returns in mature economies, has generated increased interest among global insurance and reinsurance providers toward Latin America.
Concurrent with this trend has been the global shift toward stricter regulation of financial services companies. There also has been a marked increase in regulatory activity to support the insurance and reinsurance markets.
In some instances, the focus is geared toward protecting local insurance interests or furthering national economic goals unrelated to insurance and reinsurance.
Latin America’s economic growth rate was about 5.7% for 2010, 4.0% in 2011 and 1.8% in 2012, according to the IMF, but the rate varies widely among countries in the region. While Brazil’s GDP is believed to have grown 0.9% in 2012, other South American countries are believed to have experienced growth between 1.9% (Argentina) and 6.3% (Peru).