
Life insurance in LatAm: A rich seam to mine

Claudio Correa, who heads US life insurer Ohio National's Chilean unit, is chairing a LIMRA-LOMA conference being held in Santiago next month.
Correa played a key role in establishing the focus of the event, which is being held to provide insurers with knowledge and insight that can help them overcome challenges in the marketing and distribution of life insurance and pension plans.
BNamericas asked Correa about what some of the key issues are and what the outlook is.
BNamericas: Claudio, you helped guide the topic selection and agenda content of the forthcoming LIMRA-LOMA conference. Why is the conference theme, Challenges in the Marketing and Distribution of Life Insurance and Pension Plans, relevant at this time for Latin America?
Correa: The insurance industry, on a global level, is suffering changes that potentially can alter how we do things today - new regulations such as those concerning market conduct; new technology and easy access to information; technological mediums such as smartphones; consumers who are more informed, sophisticated, and demanding; and new laws that defend consumer rights. All this requires the insurance industry to rethink who our clients are and how they will be in the future. What must also be taken into account are regulations that could impact sales channels, and technologies that can support or modify sales channels. The conference seeks to help establish where the life insurance industry is heading.
BNamericas: The conference is being held in Chile. What do you see as some of the top priorities for insurance executives in the country?
Correa: Today in Chile we're looking at developed countries and how technology is forecast to affect the industry. In the same way, we look at how certain regulations have affected sales channels - these same regulations are on the way to being developed in Chile. All this means that we executives, as a matter of priority, must be ready for these potential scenarios characterized by change.
BNamericas: A Moody's executive told us recently that, in the region, Argentina's banking sector has the greatest growth potential, citing currently low penetration levels, among other factors. Would you say Argentina's insurance industry also has plenty of room to expand?
Correa: I think that not only Argentina has enormous potential in terms of life insurance - in general, countries such as Colombia, Peru and Brazil present enormous opportunities also. In Chile, for example, I can cite as an example that life insurance with savings products has been growing systematically in the double digits.
The reality is that most countries in Latin America have a latent need to increase gross domestic savings and one of the best and most efficient vehicles is life insurance with savings policies, which the insurance industry can offer, above all when they are linked to benefits for pensions.
BNamericas: Latin America's economy is forecast to improve this year and next - but not drastically. What is the general feeling among insurers about the outlook and prospects for Latin America? Do you sense optimism?
Correa: Generally speaking, I think the region has great potential in terms of the improvement of economies. It has countries with internal markets that are tremendously interesting because of size and because they are virgin territory regarding the development of life insurance. Even though in recent years growth has been minimal - a product of global political and economic instability - I think Latin America has plenty of potential if governments focus on growth and policies that incentivize savings and education of the population.
BNamericas: What are the main risk factors facing the industry in the region in terms of its continued expansion?
Correa: The first is political risk in each country, and populism. The life insurance industry is closely linked to the economic and financial health of a country.
The second is global financial stability which, in turn, permits stability in terms of forecasting financial income, which was the case in the 1990s and part of the 2000s.
The third is regulatory stability which facilitates healthy development of the market and its growth and, to some degree, also confidence in self-regulation.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Brazil)

Brazil monetary policy tightening forecast to pick up pace
The central bank began the current cycle of rate hikes in September.

The likely new chairman of Brazil's Petrobras
The national oil firm’s current chairman, Pietro Mendes, will move on to lead regulator ANP.
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Villa Ángela V Solar Park
- Current stage:
- Updated:
2 days ago
- Project: Vila Nova
- Current stage:
- Updated:
2 days ago
- Project: Villa Ángela IV Solar Park
- Current stage:
- Updated:
2 days ago
- Project: Villa Ángela III Solar Park
- Current stage:
- Updated:
2 days ago
- Project: Los Aromos wind farm
- Current stage:
- Updated:
2 days ago
- Project: Villa Ángela solar park
- Current stage:
- Updated:
2 days ago
- Project: San Bartolomé hydroelectric project
- Current stage:
- Updated:
2 days ago
- Project: Improvement of the health services of the hospital II Vitarte
- Current stage:
- Updated:
2 days ago
- Project: Paso Ancho Dam
- Current stage:
- Updated:
2 days ago
- Project: Expansion of Juan Santamaría International Airport
- Current stage:
- Updated:
2 days ago
Other companies in: Political Risk & Macro
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Agência de Transporte do Estado de São Paulo  (ARTESP)
-
Created in 2002, the São Paulo State Transport Agency (ARTESP) is in charge of overseeing public transportation for Brazil's São Paulo state. Working under the Secretariat of Go...
- Company: Secretaría de Defensa Nacional de la República de Honduras
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Ministerio de la Vivienda, Hábitat y Edificaciones de República Dominicana  (MIVHED República Dominicana)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Alvarez & Marsal, Sucursal México
- Company: Business Finland Oy  (Business Finland)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Control Risks México S.A. de C.V.  (Control Risks México)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Alcaldía Municipal de Montenegro  (Alcaldía de Montenegro)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...