The ALARYS conference for Latin American Risk Managers is just finishing up today in Southampton, Bermuda. As an attendee I can tell you that it was well attended, that the conference speakers were top-notch and the message that Latin America is open for captive business was well communicated.
The potential that exists for doing business in Latin America, in particular Brazil and Argentina, is astounding. Latin economies are stable and growing exponentially. Latin Risk Managers that represent large multi-nationals have embraced the use of captives and many other localized risk managers are looking for creative risk financing programs and are seeing captives as a viable solution.
There are some hurdles to overcome for captives to become commonplace though. In the US and Europe, captive growth went through several transitions overcoming resistance and compliance issues. That same process will have to take place in Latin America. The two largest insurance markets, Brazil and Argentina, have come a long way in the past several years to making this happen and I am confident that they will continue to make changes that are culturally appropriate and that make sense for their corporate citizens to take advantage of the capital efficiencies and loss controls that captive insurance can leverage.
As for me, I’m getting myself ready for the opportunities that will present themselves in the coming years. I am studying the culture and history of Brazil and Argentina and trying to learn Spanish and Portuguese. If Latin America is open for business I want to be first in line to help them.