Insurance: The week in 10 stories

Regional

Medical inflation in Latin America will be higher than the global average, presenting challenges for healthcare providers to pass costs on to consumers, according to a survey by Mercer Marsh Beneficios.

Argentina

–Global reinsurer Sava Re obtained authorization to start operating in the country next month.

–Insurance watchdog SSN outlined steps needed to switch over to a risk-based supervision model.

Brazil

–Brazilian reinsurance companies Terra Brasis and Austral Re are in preliminary talks to merge, according to a local daily.

–The insurance industry saw weak growth in the first half of the year as a strong performance by the vehicle segment was offset by a contraction in the pension segment.

–The central bank and insurance regulator Susep authorized the creation of a savings bond joint venture between Rio Grande do Sul state-run bank Banrisul and insurance company Icatu Seguros.

–Brazil's superior court ordered the federal government to increase pensions for elderly persons who need health-related support, potentially, adding pressure to the country's already difficult fiscal situation.

Mexico

About 50% of P&C insurance policies in Mexico are undervalued and would not meet clients' needs in the event of loss or damage, according to Rafael Vargas, a claims adjuster and founder of Claims Consulting Services.

Peru

Insurers have paid US$428mn in claims related to last year's coastal El Niño phenomenon, corresponding to 91% of the claims filed as of June 30.

Puerto Rico

Local insurer association Acodese said its members had settled 96% of the claims filed in relation to Hurricane Maria.