Best’s Market Segment Report: AM Best Maintains Stable Outlook on Chile’s Insurance Industry

AM Best is maintaining its stable outlook on Chile’s insurance industry, citing premium growth, sustained profitability and strengthened regulatory framework.

The Best’s Market Segment Report, “Market Segment Outlook: Chile Insurance,” notes that the country’s insurance penetration rate has grown modestly, and while it is higher than most Latin American countries, it remained below 5% as of 2023. However, the insurance industry registered 8.7% real growth in 2023 and was led by the life segment’s growth of 15.2%, driven predominantly by annuities and pension insurance. The life and property/casualty market segments also have remained profitable despite unfavorable technical results.

“Despite the favorable bottom-line results, underwriting results have stayed on the negative side, driven by higher costs in the different segments and an increase in claims in the life segment. The positive net income reflects higher investment income, which benefited from the high rates in 2023,” said Inger Rodriguez, financial analyst, AM Best.

The report states that Chile is in the process of strengthening its insurance regulatory framework, and the regulator has defined as part of its strategic objectives, convergence toward international financial reporting standards; the implementation of IFRS 17 aims for greater uniformity in the accounting practices and reporting of financial information of insurance entities. Overall, AM Best expects Chile’s insurance market to withstand current challenges, aided in part by an expanding capital base, and will continue monitoring developments that could affect the performance of domestic insurance companies.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=353631.

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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AM Best is maintaining its stable outlook on Chile’s insurance industry, citing premium growth, sustained profitability and strengthened regulatory framework.