FIDES makes Chile a global focus for the re/insurance industry

This year’s FIDES conference will make Chile the global focal point of insurance, says chairman of the organising committee José Manuel Camposano, president of the Asociación de Aseguradores de Chile (AACH), the Chilean Association of Insurers.

“High level international visitors will make this one of the most important events in the sector,” he said.

“The main objective of this summit is to highlight the role of the private insurance industry to the global community, describe its role and show its contribution to society and the economic development of countries.

“The fact that this conference is taking place in Chile is recognition for us and a great honour, as we have the opportunity to show the leadership of the Chilean insurance market and the qualities of our country.

“At this conference, we will discuss the challenges and trends that are shaping our industry, and in particular form a consensus regarding a global perspective through the multiple relationship and networking meetings to be held during the event.”

The conference has exceeded registration expectations with a record audience of 1,400 national and international experts, all internationally renowned professionals, with more than 600 companies registered from 40 countries.

“For the academic programme we have brought together high level speakers of great experience from different areas of the industry to share their views,” continued Camposano. “For example, we will have four panels focused on reinsurers, insurers, regulators, brokers and adjusters. We are very pleased with those who have accepted our invitation and I think the whole programme is outstanding.”

For this conference the major issues of the international industry have been grouped into four areas: insurance and disaster, impact of demographic changes in insurance, regulation and new trends.

“Without doubt, the global insurance industry is part of the solution to the problems facing all these work areas,” said Camposano. For example, in disaster financing, countries would not be able to cope with such significant losses without re/insurance, and in terms of demographic changes, innovative solutions are being offered to the market, for example how to deal with longevity in health or pension products.

“But there are also challenges in all these areas, and this meeting will allow us to exchange ideas and experiences,” he said.

Another important theme will be regulation. This is a trend in the industry around the world. In Chile, as in most countries, the adoption of risk-based capital models is already a reality, or is coming soon.

“In our country, a bill is being discussed to implement a model of this type. Our main concern, as an industry, is that these models take into account the proportionality of each company and the local reality, and that the model does not end up producing unwanted side-effects, such as market concentration. We have a sophisticated and competitive market and we want it to stay that way,” said Camposano.

“The development of the insurance market in Latin America is strengthening, but there is still a lot of room for growth. In comparison with developed countries, the figures are still low. For example, in Japan, insurance penetration is 10.1 percent and in Switzerland the premium per capita is $6,600.

The insurance market has a promising future in our region. There is a significant gap with respect to developed countries, and our task is to close those gaps.

“Conceptually, insurance is both the foundation and a consequence of development,” said Camposano. “The protection provided is a source of financial stability for families and businesses, avoiding extreme poverty or bankruptcy. In turn, this stability means a larger holding of wealth, which in turn creates more need for insurance. All this points towards the continued growth of insurance in the region in the coming years.

“We therefore have the incentive to continue working to develop our market for the benefit of the countries and the quality of life of each inhabitant.”

He added that the presence of the FIDES conference in Chile is hugely positive for the industry.

“With these major themes and prominent international insurance market experts, we have the opportunity to draw many useful conclusions to help strengthen the development of the industry. The exchange of knowledge and experience will deliver added value enabling us all to move forward.”