Despite progress on sweeping reforms to its insurance regulations, Argentina remains a volatile environment for insurers due to high inflation, currency depreciation and investment uncertainty, which pressures solvency ratios and complicates capital management, according to a new AM Best commentary.

Argentina’s insurance segment is undergoing a substantial regulatory overhaul aimed at enhancing solvency, transparency and market oversight. In 2024 and 2025, the Superintendency of Insurance of the Nation (SSN) initiated major reforms to the General Insurance Activity Regime (RGAA). A centerpiece of the reform package is the increase and harmonization of minimum capital requirements. At the same time, consumer protections have advanced, and Argentina is seeing a gradual stabilization of its economic environment, with real GDP is expected to rebound strongly and grow in 2025 and 2026 following two years of recession, along with a sharp drop in inflation. The economic and political impacts of the U.S. aid to Argentina remains to be seen.

According to the Best’s Commentary, “Stabilization and Overhaul: Argentina’s Economic Recovery and Insurance Segment Reform Under Pressure,” macroeconomic stabilization efforts and sweeping sectoral reforms have the potential to foster a more transparent, disciplined and resilient insurance market over the medium term. “At the same time, while new regulatory requirements may benefit larger insurers, they are likely to challenge smaller players, potentially prompting consolidation ahead of a mid-2026 compliance deadline,” said David Lopes, senior industry analyst, AM Best.

Another concern, according to the commentary, is the bottlenecks foreign insurers may face in accessing reinsurance markets or settling cross-border transactions due to exchange rate restrictions and limited hard currency availability. Joint resolutions by tax and trade authorities, coupled with central bank restrictions, also have led to delays in transferring reinsurance premiums to foreign reinsurers.

“Ongoing restrictions on capital mobility, foreign exchange and reinsurance flows continue to hinder operational flexibility, particularly for foreign-domiciled insurers, though new digital tools and policy measures may help improve oversight and transparency over time,” said Ann Modica, director, AM Best.

To access the full copy of this commentary, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=359035.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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