As reinsurers meet in Costa Rica for FIDES 2025, industry leaders from Howden Re have highlighted the growing importance of Latin America in the global reinsurance sector. The region is seeing increased risk appetite, new sources of capital, and a focus on addressing protection gaps.
April McLaughlin, Managing Director at Howden Miami, noted a rise in new market participants. “We are seeing plenty of capacity entering the market, including a noticeable increase in MGAs,” she said. “Many of these are relatively new and not just based in the Americas. We’re seeing interest from firms in the Middle East and Asia who want to diversify their portfolios and take on some regional exposure. It’s clear that global appetite for the region is growing.”
Howden Re’s recent report indicates that while the global reinsurance market is experiencing a softening phase after a period of stricter conditions, discipline remains important. Mario Baotic, Head of International Growth Markets at Howden Re, commented on regional trends: “Hurricane Melissa will likely keep reinsurers cautious across the region, especially in Central America and the Caribbean, where wind exposure is high.” He added: “People want to know what kind of discounts they can expect and how much capital is available. In general, we’re seeing the same softening trends as elsewhere, but regional variations are significant.”
Regulatory differences continue to shape business models across Latin America. McLaughlin explained: “In Chile, rates have started to come down after several years of steep increases, perhaps more sharply than in neighbouring markets. Each country is different, with its own regulatory and rating requirements. In Chile and Peru, reinsurers need two ratings, S&P and AM Best, to write business. Brazil, meanwhile, requires reinsurers to be locally registered, which leads to more fronting arrangements.”
According to data from Howden Re’s Brazil Climate Report, natural catastrophe risks remain significant throughout Latin America. Chile faces ongoing earthquake and flood threats while Brazil contends with climate-related challenges that require advanced risk transfer solutions.
The demand for innovative insurance products continues to grow as companies seek efficient ways to manage volatility through parametric or alternative structures. McLaughlin observed: “There’s some growth in both fronting and MGA activity. They often go hand in hand, but it’s hard to quantify at this stage. What’s clear is that we’re seeing a lot of movement and interest across the region, which is encouraging.” Baotic added: “Growth markets such as Latin America continue to serve as testing grounds for innovation, combining local data, flexible structures and international capital to close protection gaps sustainably.”
With more capital entering Latin America and clients seeking tailored solutions amid complex regulations and changing risks landscape,the role of intermediaries like Howden Re has become increasingly central. The company has expanded its operations in Brazil and Peru by acquiring Innova Re in Peru and establishing Howden Re Miami as an entry point into Latin American markets.
Massimo Reina, CEO Howden Re International stated: “Our international platform continues to expand at pace,and Latin America is central to that momentum. Over the past two years,we have strengthened our treaty reinsurance presence through the growth of our Brazil operations,a flagship presence in Latin America ,with acquisition of Innova Re in Peru,and though establishment of Howden Re Miami as critical gateway .These localised capabilities ,paired with our global platform ,ensure we can bring best what Howden has offer benefit our clients .”
Industry observers note that future growth will depend not only on available capacity but also on confidence,increased innovation,and stronger connections between local expertiseand international resources.