Insurance
From The Report: Argentina 2018
View in Online Reader

Maintaining robust levels of profitability through the use of financial instruments rather than the development of core competencies, Argentina’s insurance industry has remained relatively stable since 2008. The introduction of more market-friendly regulations since 2015, coupled with improvements across a number of macroeconomic indicators, is expected to have a positive impact on the insurance industry, enabling it to focus more on developing the market as well as take on a more active role in the overall economy. Regulatory reforms are expected to lead to market consolidation as the government seeks to strengthen the industry and attract international players. While penetration rates remain low, the active role of the government in the development of the sector is an encouraging sign for both local and international insurers. This chapter features interviews with Juan Pazo, Superintendent, National Superintendence of Insurance; and Alejandro Simón, CEO, Grupo Sancor Seguros.

Articles from this Chapter

Overview

A solid strategy: Increased capital requirements and greater regulatory oversight are driving the market towards consolidation
OBG
plus

Maintaining robust levels of profitability through the use of financial instruments rather than the development of core competencies, Argentina’s insurance industry has remained relatively stable since 2008. Though technical profits remain low, they were compensated by assets held in government bonds or short-term central bank notes known as Lebacs. The introduction of more market-friendly regulations since 2015, coupled with improvements across a number of macroeconomic indicators, is expected…

Analysis

In the works: Ongoing reforms to strengthen occupational risk laws
OBG
plus

Under Argentine law, employers are required to provide occupational risk insurance to all employees. While Argentina is considered one of the pioneers in this regard since first introducing the requirement in 1915, the framework has over the years gone through a number of reforms, with mitigated results. In 2017 occupational risk premium reached a total of AR79bn ($4.1bn), up 29% on 2016. It accounted for 35% of premiums in the property damage and mixed segment, making it the second-largest subsegment,…

Interview

A new framework: Juan Pazo, Superintendent, National Superintendence of Insurance (Superintendencia de Seguros de la Nación, SSN), on strategies to boost sector growth
OBG
plus

Interview :Juan Pazo How is the national insurance sector’s regulatory framework being revised? JUAN PAZO: As the regulating entity, we are now fully committed to having a fast-paced but structured catch-up to international standards working with the OECD and the International Association of Insurance Supervisors. We are also focusing on transparency in order to build trust with investors. Aside from establishing greater transparency guidelines for the local industry, the SSN is simplifying…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
OBG
plus

While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and developed Asian markets. With long histories of trading risk, a general acceptance of the relevant product…

Overview

Reassuring trend: New reinsurance programmes are bolstering coverage against natural disasters in emerging markets
OBG
plus

While advanced economies generate the vast majority of insurance and reinsurance business, emerging markets are posting higher rates of growth. Complementing this underlying trend is a strong and expanding interest in catastrophic risk, which by nature tends to pertain to emerging markets. This is coming alongside fast-paced, sector-transforming innovation, which could provide a major boost to industries in less-developed economies. By the Numbers In terms of simple throughput, insurance remains very much centred in North America, Europe and developed Asian markets. With long histories of trading risk, a general acceptance of the relevant product…

Analysis

Flexible funding: New partnership framework for infrastructure development provides opportunities for insurers
OBG
plus

Infrastructure development has been highlighted by the government as a fundamental pillar in ensuring Argentina’s long-term economic success, however, the industry remains relatively underdeveloped. According to the World Economic Forum’s “The Global Competitiveness Report 2017-18” report, the country ranked 85th out of 135 in terms of infrastructure development. To improve this situation, the government has demonstrated support for public-private partnerships (PPPs) to help fund infrastructure…

Interview

New eyes: Alejandro Simón, CEO, Grupo Sancor Seguros, on market consolidation and emerging investment opportunities
OBG
plus

Interview :Alejandro Simón How would you assess the sector’s practices compared with international standards? ALEJANDRO SIMÓN: Argentina is relatively underdeveloped when it comes to best practice in the areas of risk management and corporate governance. However, it is also true that since 2015 the National Superintendency of Insurance (Superintendencia de Seguros de la Nación, SSN) has made significant advancements in both of these fields. Having said that, we are still far from reaching…