Tech adoption key for LatAm growth: Fitch

The Latin American insurance sector has entered the year with a neutral outlook, supported by stable capitalisation, moderated inflation and lower interest rates, according to Fitch Ratings’ latest report. 

However, reinsurers face significant challenges, particularly in managing climate risks and integrating new technologies to optimise operations.

The adoption of technology is important as markets strive to improve operational efficiency and address coverage gaps continent-wide. 

In Peru, the integration of digital platforms could enhance product accessibility, reduce costs, and boost insurance penetration. 

Currently, more than 70 per cent of Peru’s insurance underwriting remains concentrated among just four insurers, highlighting the need for diversification through technology-driven solutions.

Panama’s insurers are similarly focused on digital transformation, including investments in cybersecurity and compliance with the new IFRS 17 regulatory framework, set for phased implementation through 2027. 

These efforts aim to enhance financial transparency and operational resilience.

While challenges remain, reinsurers have opportunities to leverage technology to navigate climate risks and improve market reach. 

Albeit at slower rates compared to 2024, lower inflation and moderate economic growth are expected to support 2025 premium growth; forecast at 7.9 per cent in Brazil, 9.6 per cent in both Peru and Chile and 9 per cent in Panama, reflecting stabilising economic conditions.

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