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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Best’s Market Segment Report: Latin American Reinsurers Reposition as Demand Strengthens

Although insurance penetration in Latin America remains low, the demand for reinsurance capacity is strengthening owing to a wide variety of natural perils.

The Best’s Market Segment Report, “Latin American Reinsurers Reposition as Demand Strengthens,” states that insured natural catastrophe losses amounted to USD 11.6 billion in 2024; however, just USD 1.5 billion were insured as insurance penetration remains very low. Global reinsurers have rekindled their interest in the region. At the same time, local participants aim to continue growing while strengthening their brands, taking advantage of the spaces created by the past hard market.

“While catastrophe-exposed lines involve more complex negotiations, especially in countries with major exposure such as Mexico, Guatemala, Costa Rica, Peru and Chile, pricing has been very competitive, with conditions flexible overall,” said Inger Rodriguez, financial analyst, AM Best.

Although Brazil’s primary insurance industry is more profitable than its reinsurance industry, the country’s leading insurer is dedicated exclusively to reinsurance. However, the report notes that the company has begun to reduce its underwriting volume by carefully selecting its risks, and consequently, has provided other players in the market an opportunity to diversify the risks among different companies.

“Although the volume of reinsurance accepted by Brazil’s reinsurers has grown, the share of Brazil’s reinsurers among the total premium ceded by local insurers has decreased, indicating that local insurers are ceding significantly more to reinsurers offshore,” said Ricardo Rodriguez Perez, senior financial analyst, AM Best.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=357633.

A video discussion of this report also is available (English; Spanish).

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.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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