Argentina: Major Insurance And Reinsurance Developments In 2008

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.

Consolidation And Uncertainty Despite Promise

By most measures, Argentina is considered Latin America's fourth largest insurance market. The market has continued on a path of steady growth and consolidation in 2007 and 2008. The total number of insurers operating in the jurisdiction declined to 184 in 2007, from 189 the previous year and 266 in 1998. Meanwhile, average insurance market growth has topped 12.8% over the last four years and insurance penetration remains relatively low. That being said, however, Argentina's high sovereign risk and the government's recent nationalization of the nation's private pension funds has caused many, including Moody's, to express concern about the coming year for