Flaspöhler Latin America study WHAT THEY SAID...
As part of the study, Flaspöhler analysts asked both life and non-life interviewees a series of open-ended questions, covering points such as the challenges cedants face and how they think reinsurers could improve their business offering to them. These responses offer reinsurers an invaluable insight into the needs of their clients and potential clients.
LIFE
In what way(s), specifically, are relationships improving and why?
ARGENTINA: “Increased capacity and increasing support in subscription of risk.”
COLOMBIA: “Every day we have better communication and more timely service.”
ECUADOR: “We are obtaining better conditions and more flexibility.”
MEXICO: “Some of them provide courses that enable the company to make better decisions on underwriting and risks.”
What are the greatest challenges your company faces today? VENEZUELA: “Implementing effective marketing and sales strategies that lead to a successful sales force.”
BRAZIL: “Management of the risks involved and regulation.”
GUATEMALA: “To be more creative, to be able to bring products to the mass of the population not covered.”
ECUADOR: “Development of non-traditional products of life and medical cats, placed through alternative distribution channels.”
Where do you think the Latin American/Caribbean Life & Health reinsurance market is headed and what specific advice do you have for reinsurers about where they should focus in the future?
EL SALVADOR: “Client service, mass marketing and products directed to higher market penetration—simpler, less expensive, payment ease.”
HONDURAS: “Fast-growing portfolio by the emergence of new channels of distribution, such as bancassurance and telesales.”
NICARAGUA: “I think that the market tends to regionalisation and concentration. Despite the new multiple companies that may be being created, the regional companies in the long run will mark the way. Reinsurers can use their knowledge and contacts to generate new business opportunities in this regard.”
VENEZUELA: “I believe the market is headed for risk transferring through term policies for middle-income families, and risk mitigation for high-income business people who are interested in estate planning and succession planning, as well as corporate stability.”
NON-LIFE
In what way(s), specifically, are relationships improving and why?
BARBADOS: “Reinsurers are now trying to understand their clients better and what differentiates them from the other players in the market.”
BRAZIL: “A closer relationship, more support and more capacity being provided.”
ECUADOR: “We have a programme of visits with them. This allows better contact, knowledge and confidence among the executives from both sides.”
PERU: “There is now more trust on both sides.”
What are the greatest challenges your company faces today? ARGENTINA: “Internal competition as a result of the overcapacity in the market.”
COLOMBIA: “The soft market and no price consistency from the reinsurance markets.”
GUATEMALA: “Capital requirements and regulatory changes.”
MEXICO: “Strong competition by low growth of the economy and risk compounded by insecurity.”
Where do you think the Latin American/Caribbean Non-Life reinsurance market is headed and what specific advice do you have for reinsurers about where they should focus in the future?
ARGENTINA: “They should provide a better and quicker service. It should be a case of global thinking but local practice.”
BOLIVIA: “Governmental projects are developing so fast and some companies do not have the capacity in their treaties to quote these risks.”
COLOMBIA: “The reinsurance market is very short-term oriented and is heading toward constant ups and downs. It should focus on improving its pricing excellence in order to avoid the rather opportunistic approach that is common these days.”
PERU: “Reinsurers must have a detailed understanding of the markets in which they operate.”
Summer 2011 | INTELLIGENT INSURER | 43
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