HDI’s plan for expansion in LatAm involves digital disruption

There’s immense potential in Latin America, where insurance penetration remains low, yet growth is outpacing more developed markets.

This is the view of Nicolas Masjuan, head of Latin America at HDI International, who believes one of the biggest trends shaping the market is the fluctuating motor insurance cycle. 

“Motor has gone through rapid hard and soft market swings since the pandemic,” Masjuan explained to Miami Reinsurance Week Today. “We saw high profitability during the pandemic, then post-pandemic severity increased quite rapidly.” 

“Connecting well with new players and striking good distribution partnerships is critical”

HDI is keenly focused on maintaining its competitive edge: “In order to win, we need to be very sharp on the technical side, remain lean, and maintain our cost-competitive advantage.”

The rise of new distribution channels is also transforming the market. 

“We’re seeing new digital banks entering the market,” Masjuan stated, “retailers participating in insurance distribution, and many new players taking a slice of the distribution pie.” 

This shift is reshaping the way insurance is sold, and Masjuan is clear about this role.

“Connecting well with these new players and striking good distribution partnerships is critical,” he said. “That’s what we’ve been doing over the last two or three years.”

At the same time, digitalisation and artificial intelligence are reshaping insurance operations, and Masjuan noted: “Gen AI will help the entire industry decrease costs, become faster in responses, and provide a better customer experience.”

HDI’s growth strategy is centred on expanding organically as well as focusing on mergers and acquisitions. “We have been the most active insurer in the region in the last three years in M&A and partnerships. We will continue to do so.”

What differentiates HDI from competitors, Masjuan explains, is that the company operates with a decentralised decision-making approach.

“Most are made locally with high-quality local teams, which helps us move fast and react to market trends instead of having to ask corporate headquarters for approval.” 

The company ensures that its global resources are available while allowing local executives the autonomy to execute efficiently. “We leverage our global capabilities, monitor performance, and ensure we have the right talent in place to win in each market.”

Economic volatility is a challenge in Latin America, but HDI works to stay ahead of trends.

“The softening of the motor market in Brazil started earlier than in any other Latin American country,” Masjuan said. “My job was to tell the other country CEOs: ‘This is coming. It will hit you in six, nine months. Prepare yourselves.’”

HDI also benefits from its global diversification and Masjuan explained: “We are part of a well-diversified group with multiple profit engines. When one country faces challenges, others balance it out.”

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