Captives still face LatAm barriers
Latin America remains an emerging area for the captive insurance market, attendees heard at the Bermuda Captive Conference.
A panel discussion at the conference pointed out that Latin America is a small but growing area of the market at the moment. Latin America makes up 7% of global GDP, with growth of 4.3% over the next few years (2022-2026) expected. Brazil & Mexico make up the largest part of that GDP.
Panel moderator Bartolome Massot, associate director at Artex Risk Solutions; Julián Roberto Ávila, partner – reinsurance at DRET; Luis Delgado, vice president and director at SRS Latin America; and Luis Torres, international projects and captives senior manager - reinsurance representative at INTER, all discussed where the area is on the global captive map.
Greater education is required in Latin America if the region is to go from an emerging market for the captive industry to a mature one, the panel agreed. The concept of captives is not sufficiently well-known by brokers and insurers in the region, they said.
Regulation was also highlighted— he panel agreed that regulators either don’t properly understand captives or have difficulty with the concept behind them. As a result there are a number regulatory barriers that captives will have to overcome if they are to grow in the region.