Latin American Developments

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International broker Aon has released its 2009 political risk map, which identifies Venezuela, Ecuador, Bolivia and Cuba as Latin American countries with high political risk based on measures of the countries’ risk of currency inconvertibility and transfer; strikes, riots and civil commotion; war; terrorism; sovereign non-payment; political interference; supply chain interruption; and legal and regulatory risk. 

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Read More Aon Releases 2009 Political Risk Map; Four Latin American Countries Noted as High-Risk

On January 21, 2009, John P. Dearie, Jr. and M. Machua Millett of Edwards Angell Palmer & Dodge LLP’s insurance and reinsurance department presented a webinar on recent developments in the Latin American (re)insurance markets.  The webinar and the supporting whitepaper are now available free online. …
Read More Free Latin America Webinar And Whitepaper Now Available Online

As expected, reports indicate that the people have Bolivia have approved the new constitution proposed by President Evo Morales, though by a smaller margin than some had expected.  The new constitution is designed to provide the nation’s indigenous populations a greater role in the country’s political and economic systems by giving the central government greater involvement in the economy, particularly in the areas of natural resources and distribution of land and wealth. 

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Read More Bolivia Approves New Constitution, Increasing Nationalization Concerns

Under prior law (Law No. 17418, Article 162), Argentina treated reinsurance as an international undertaking and permitted the ceding company and the reinsurer to choose the appropriate law and jurisdiction in their contract.  Recent Resolution 33.320/2008, however, provides that all new reinsurance contracts involving local insurers, whether treaty or facultative, must stipulate that the contract is subject to Argentinean law and jurisdiction. …
Read More Argentina: New Resolution Requires That Reinsurance Contracts Conform To Argentinean Law and Jurisdiction

Thomaz Menezes, president of Marsh Brazil and Latin America, reportedly recently commented that the broker expects insurance premium rates to rise in the Brazilian market in 2009 due to the global financial crisis and resulting rise in claims.  In particular, Menezes reportedly commented that Marsh expects director and officer liability premium rates to rise between 10% and 30% and premium rates for property and engineering insurance to rise approximately 10%. …
Read More Brazil: Market Expected to Harden in 2009

Although all of the Latin American jurisdictions had notable regulatory and market developments in 2008, Argentina stands out as particularly significant given the size of the market involved and the fundamental nature of the developments seen there in the past year. …
Read More Argentina: Major Insurance and Reinsurance Developments in 2008