Fort Lauderdale
02 February 2018
Reporter: Ned Holmes

WCF: Latin American market continues growth despite political instability


The continued growth of the Latin American captive market is very impressive considering the political instability across many of the domiciles, according to Bartolome Massot-Cristino, assistant vice president at Quest.

Speaking on the Latin American captives panel at the World Captive Forum, Massot-Cristino revealed that the predicted figures for the Latin American market show a 2.5 percent average growth in 2017, an increase from the 2.2 percent growth in 2016, and he expects a continued growth in 2018.

Massot-Cristino said: “The latest outlook by Mercosur, which is the common market in Latin America is telling us that the outlook is very good and it will continue for the foreseeable future.”

“Considering the political situation across these countries, a lot of political instability, we think these figures are very impressive.”

The Latin American market was hugely affected by the global financial crisis, as it lowered the price of commodities, and between 2010 and 2016 there was a deceleration in market growth, but according to Massot-Cristino this changed in 2017.

He explained: “For the last six years, from 2010 to 2016, we saw a deceleration in market growth. So, 2017 is the first year in seven years that we have seen an increase in growth and that is the outlook for the foreseeable future.”

Massot-Cristino puts a large part of the change of fortunes is down to a wave of young talent flooding the Latin American market.

He said: “The world is changing. A lot of young students who went to Europe and the US to study economics and finance - they are accountants and lawyers - very well educated young professionals are going back to their home countries.”

“What we have to realise is that these young people know what we do in more developed economies and they are doing it now in Latin America. That’s what makes it so interesting, this is the moment to divert more resources to the region.”

Another member of the panel, Esperanza Mead, principal of Actuarial Factor, suggested that due to its current size the Latin American market represents an excellent opportunity for growth.

“Today in the world we have approximately $90 billion in annual written premiums for captives. Out of that less than $3 billion comes from Latin America. That means there is an opportunity to grow captives in Latin America.”

The panel also included corporate commercial manager at Appleby Global Eduardo Fox, Javier Ordonez-Namihira, senior associate at Baker McKenzie, and Gabriel Rueda Barrera, director at Rueda y Barrera.

More news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Funds approved for ‘crumbling foundations’ captive
21 February 2018 | Connecticut | Reporter: Ned Holmes
The Connecticut State Bond Commission has approved $350,000 to set up a non-profit captive insurer, which is a state government solution for an issue impacting a reported 5000 homes in the state
Crawford launches workers compensation service
20 February 2018 | Atlanta | Reporter: Ned Holmes
Crawford & Company has expanded its service portfolio in Australia to include workers’ compensation.
Kansas to alter captive laws
20 February 2018 | Kansas | Reporter: Ned Holmes
The Kansas state government has submitted a bill to update and modernise captive insurance laws in the state
ZIC and Zale Life ratings downgraded
19 February 2018 | New Jersey | Reporter: Ned Holmes
A.M. Best has downgraded the financial strength rating of Zale Indemnity Company (ZIC) and its wholly-owned subsidiary, Zale Life
Tax shelter micro captives bubble set to burst, says Adkisson
16 February 2018 | Las Vegas | Reporter: Ned Holmes
The tax shelter micro captive bubble is set to burst in 2018, resulting in large numbers of such companies to surrender their licenses, as many did last year, predicts Jay Adkisson, partner at Riser Adkisson
Leadership shuffle at Captive Resources
15 February 2018 | Illinois | Reporter: Ned Holmes
Group captive insurance consultant Captive Resources has appointed former Zurich North America CEO Mike Foley to its board of directors
Vermont proposes branch captive legislation updates
14 February 2018 | Montpelier | Reporter: Becky Butcher
Vermont has proposed to update its branch captive legislation to require branch captives to designate the state’s commissioner of the Department of Financial Regulation as its agent for service of process