RISK SPECIALIST Balancing Brazil’s insurance

The opening of the Brazilian reinsurance market is redefining relations between local and international players. Insurance buyers need to take advantage of on-the-ground knowledge and contacts, but also leverage the reach and expertise of international brokers. 

Brazil’s giant insurance and re-insurance market has been prised open slowly and unevenly. In 2008, the state reinsurance monopoly was opened to private competition. Average growth of about 13 per cent a year had already increased the size of the insurance sector to 4 per cent of gross national product (GNP), making a monopoly unwieldy, says Elias Silva, Coordinator of the Petrol Risks Group at JLT in Rio de Janeiro.

Today, the market is a hefty R$66.5 billion ($32.8 billion). Brazil, already enticing thanks to a population of 200 million and strong economic growth, has been made more attractive by the opening market. Indeed, that high level of economic growth has enticed in more players and sharpened competition, which in turn has continued to push down rates and deductibles. Michelle Oliveira, an associate in the construction and real estate division at JLT Specialty in London, refers to “a booming economy that we have never seen before in Brazil. 

 

About admin

I've been researching and writing on Brazilian financial markets, industry and economy since 2006 for a wide range of specialist media, consultancies and investors. Before that I spent over 10 years in London and New York writing for and editing magazines and journals dedicated to finance, investment and economics in developing markets, mostly for the Euromoney Institutional Investor group and Thomson Financial. Areas of coverage Below are samples of areas that I cover and some of the common themes that I investigate. Capital markets BM&FBovespa markets *capital raising trends: via equities (IPOs and secondary issuance), debt and loans *the asset management industry: legislation and coverage of the key hedge, pension and investment funds * corporate governance: how the regulator is seeking to strengthen best practice and limitations * debt markets: the nascent corporate markets, attempts to boost liquidity and new insturments. * private equity market: why this market has been so successful, who’s involved. *electronic, high frequency trading and alternative trading platforms: what does the future hold? Banking *credit: the growth of consumer and business credit and competition between banks and models *Public versus private: the role and market share of public and private sector banks and the politicization of the industry * internationalization: which Brazilian banks are expanding overseas and where * investment banking: the growth of the domestic market and who’s winning which mandates *regional banks and development banks: what role they play in the industry and how they compete Mining *licensing: the complex process of obtaining environmental, water, land and operating licenses at a state and federal level. * capacity: the feasibility and sustainability of capacity increases * financing: how miners are raising finance in Brazil and abroad *competition: the interplay Vale, MMX and junior miners *logistics: rail, road and port connections Oil and gas: the fund raising issues related to the massive of pre-salt (link) Multilatinas: Who are they and how and where they are expanding Meatpacking: Are debt burdens sustainable, what are the different business models for areas such as branding and distrbution Agriculture: How are farms consolidating, what are environmental risks, how can foreign investors be involved. IT and software: Can Brazil take on India and build a viable long-term IT industry? For more information on clients and work, please see the media and consultancy sections.
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