New Report from Lockton Global Highlights Challenges for Risk Management in Latin America

As more companies invest and expand throughout Latin America, there is increasing focus on protecting these investments through effective risk management and insurance approaches. Global insurers are increasing their participation and activities in the region while governments are adapting their regulatory approach.

A new report from Lockton Global highlights these risk management issues across Latin America. Manuel Casas and Logan Payne of Lockton Global review the issues in Brazil, Argentina, Colombia, Venezuela, Mexico and the entire region as economic growth continues. Lockton Global is a partnership of insurance brokers serving multi-national companies

Casas and Payne write, Latin America has demonstrated remarkable resolve in the face of the global financial crisis with Gross Domestic Product growth averaging 4 percent during the past five years. This growth can be attributed to the opening of markets, strong commodity exports, and increasing purchasing power of its domestic market.”

The report notes that “Although the economies of Latin America have developed steadily during the past decade, there is still room for tremendous growth in the insurance industry. While Latin America represents 8% of the world GDP, written insurance premium represents less than 3% of the global premium spent. As Latin America continues to grow, many anticipate that the insurance industry will see a large increase in premiums and an overall maturation.”

In a 2012 report, A.M. Best projects insurance premiums to grow from $134 billion in 2011 to $187 billion in 2016. Market penetration in the two largest insurance markets, Brazil and Mexico, sits around 2%, well below the world average of 6.6%.

The full Lockton Global report is available free at www.locktonglobal.com (PDF).

Media Contact:
Dean Davison, APR
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Lockton Global
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E-mail: [email protected]
www.locktonglobal.com