Insuring Brazil

Everyone seems to be excited about Brazil, and where there’s economic growth, there’s more to insure. According to speakers at an ACE Group client briefing at Lloyd’s, which I covered for Strategic Risk magazine earlier this month, massive government investment and a fast-maturing insurance industry mean great opportunities for foreign companies. The Brazilian insurance industry almost quadrupled in value over the last 10 years to reach US$49.65m in 2009, with even more staggering growth of 409% in the life and pensions sector. Audience members were worried about state intervention in business following the election of  former Marxist guerrilla Dilma Rousseff as the country’s first female president. But Rear Admiral Chris Parry, a strategic forecasting specialist, reassured them: “The Brazilian government knows it’s got to show a level of fiscal responsibility and political predictability, or it will be lumped in with the other South American countries…You won’t see nationalisation, but you may see the odd demonstration of state power to show they can do something if the electorate wants them to.” He also encouraged them to look elsewhere in South America – Costa Rica and Chile are both good bets apparently.