As we flagged in the first of this two-part blog series, Peru’s insurance market continues to show resilience and growth, driving demand for insurance products. AM Best’s stable outlook and the market’s impressive 13% real growth in 2023 are testaments to the sector’s potential.
However, to continue to support this growth the expert team at Pro Global are working closely with re/insurers in the country to tackle complex niche technical challenges that impact the overall efficiency of the sector, and a key area for this is reinsurance placement and allocation.
The Risks of Incomplete Reinsurance
One trend we’ve observed is the occurrence of unplaced reinsurance, where brokers for one reason or another have not placed a reinsurance line. In some cases, insurers risk discovering gaps in coverage only after claims were filed – resulting in significant challenges.
This issue is not just theoretical. In Peru, there have been instances where brokers disappeared from the market after failing to complete large placements, leaving insurers exposed and prompting increased regulatory scrutiny.
At Pro Global, we’re addressing this challenge by providing independent reinsurance placement verification services for insurers in Peru. Insurers and brokers rely on us to deliver Certificates of 100% Facultative Reinsurance Allocation, confirming that every risk is fully covered.
Bridging the Trust Gap
Our role as a trusted advisor is vital, especially in urgent scenarios where insurers need immediate assurance. By verifying reinsurance allocations, we help mitigate risks, enhance transparency, and foster stronger relationships between insurers and reinsurers.
This service has become indispensable as the market demands higher accountability and stricter audit controls. It also underscores the need for robust enterprise risk management capabilities, which, as AM Best notes, are crucial for navigating Peru’s complex insurance landscape.
A Market of Opportunities and Challenges
While Peru’s insurance sector offers immense opportunities, it also requires meticulous oversight and innovation to address its unique challenges. As we navigate these complexities, Pro Global remains committed to responding to the in-depth pain points that insurers are seeking support with to further the market’s growth and stability.
Further Reading: Ensuring Accuracy in Reinsurance Allocations: Trends in Peru’s Growing Insurance Market (Part 1)
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Meet our expert
Name: Alberto de Trazegnies
Job title: Peru Representative
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