Latin America Regional Landscape Q2 2021 Overview
Insurance Market & Key Risks
The market, although still challenging, is starting to plateau for some lines of business. Rate increases and policy restrictions continue to be imposed, but with less intensity, except in areas such as Energy, Power, D&O, and Cyber, as well as for loss active or poorly managed risks, which continue to experience a continuation of very challenging market conditions. For such risks, alternative risk transfer methods such as captives continue to be explored.
The transition to centralized underwriting is creating opportunity for local insurers who are, in some cases, able to offer better solutions as a result of their local market understanding and relationships.
Claims delays and negative responses remain a key concern. Longer analysis times and narrow interpretations of policy language are leading to lengthy debates and challenging discussions with insurers, and therefore recognition of claims coverage is taking longer. Loss adjusters have become more active in the definition of claims, including coverage definition.
Risk volatility is creating greater need for risk assessment and quantification. More and more insureds are looking to Aon for support in understanding, quantifying and managing their exposures and risk volatility. Aon relies upon data and analytics to advise insureds, and to work with insurers to structure custom solutions for clients.