CBMU Annual
Conference
IUMI Facts & Figures Committee &
ALSUM - Latin American Marine Underwriters Association
Marine Insurance in
Latin America
Erika A. Schoch
IUMI Facts & Figures Committee &
Agenda
Economical background
Latin America Insurance premium Latin America Insurance details per market
Latin American Real GDP Growth
-10% -5% 0% 5% 10% 15% 02 03 04 05 06 07 08 09 10 11Brazil Chile Colombia Mexico Peru
Inward and Outward Foreign Direct Investment Stock (2002-2011)
-100,000 200,000 300,000 400,000 500,000 600,000 700,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Brazil Chile Colombia Mexico Peru
(in mio USD)
24% 20% 22% 23% 19% 0% 5% 10% 15% 20% 25% 30% Peru Mexico Colombia Chile Brazil
Investment Rate as part of the GDP
14.5 58.2 22
Exports by sector (%)
34 27.9 35.2 21.8 64.2 10 6.3 16.7 74.5 16.7 49.5 10.7Brazil
Peru
Colombia
Chile
Mexico
Agriculture prod.
Fuels and mining prod.
Manufactures
Sovereign ratings
Country
Foreign Currency Long Term
Foreign Currency Short Term
Moody's
S&P
Fitch
Moody's
S&P
Fitch
Brazil
Baa2
BBB
BBB
NR
A-2
F2
Chile
Aa3
A+
A+
NR
A-1
F1
Colombia
Baa3
BBB-
BBB-
NR
A-3
F3
Mexico
Baa1
BBB
BBB
WR
A-2
F2
Peru
Baa1
BBB
BBB
NR
A-2
F2
Economic Freedom & Doing Business Index
Nr.
Economic Freedom Index
(186 countries)
1
Hong Kong
7
Chile
42
Peru
45
Colombia
54
Mexico
99
Brazil
Nr.
Ranking Doing Business
(183 Countries)
1
Singapore
37
Chile
43
Peru
45
Colombia
48
Mexico
130 Brazil
Marine insurance growth in Latin America
2,289
27,444
2010
(in USD mio)
Latin America Rest of the World
(7.7%) 2,639
29,183
2011
(in USD mio)
Latin America Rest of the World
(8.2%)
Agenda
Economical background
Latin America Insurance premium Latin America Insurance market Type of coverages
Latin American Marine Insurance Premium
2011 2010 20092008 -200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 Cargo Offshore (in Mio. USD)• Economical & Legal Environment • Social & Political Environment • Infrastructure
• The New "Sexy" • Market competition
• Lack of marine knowledge • Excess of Confidence
• LA Classic Marine Risks
Agenda
Economical background
Latin America Insurance premium Latin America Insurance market Type of coverages
Brazilian Marine Market Analysis
2… 2… 2… 2… -200 400 600 800 Cargo Hull Marine Liab.Offshore (1)(in Mio. USD)
(1) Before 2011 Marine Liab. were included within the Hull LoB
• Economical & Legal Environment • Political & Social Environment • Size of the market
• Protectionism vs PAC 1 & 2 (2)
• Infrastructure • Auto-sufficient • Coinsurance • Quick learner • Nat Cat Exposures
• LA Classic Marine Risks
(2) PAC = Programa de Aceleração de Crescimento
Chilean Marine Market Analysis
2011 2010 2009 2008 -20 40 60 80 100Cargo Hull Offshore & Marine Liab.: No data available (in Mio. USD)
• Economical & Legal Environment • Political & Social problems
• Infrastructure • Nat Cat Exposure
• Technical vs Commercial Rates • Coinsurance (in Hull)
• London Market Attention • LA Classic Marine Risks
Colombian Marine Market Analysis
2011 2010 2009 2008 -20 40 60 80 100 120 140 Cargo Hull(in Mio. USD)
Offshore & Marine Liabilities : No data available
• Economical & Legal Environment • Political & Social Environment • Infrastructure
• Technical vs Commercial market • Nat Cat Exposures
• LA Classic Marine Risks
Mexican Marine Market Analysis
2011 2010 2009 2008 -100 200 300 400 Cargo Hull Offshore (in Mio. USD)Offshore data is best estimates Marine Liabilities: No data available
• Economical & Legal Environment • Political & Social Environment • Infrastructure
• USA
• Size of the market • Nat Cat Exposures • Classic Marine Risks
Peruvian Marine Market Analysis
2011 2010 2009 2008 -20 40 60 80 Cargo Offshore (in Mio. USD)Offshore data is best estimates Marine Liabilities: No data available
• Economical & Legal Environment • Political & Social Environment • Infrastructure
• A "Fishy" market • Market competition • Nat Cat Exposures • Classic Marine Risks
Venezuelan Marine Market Analysis
2011 2010 2009 2008 -30 60 90 120 150 Cargo Hull Offshore (in Mio. USD)2011 data is best estimates
Marine Liabilities: No data available
• Economical & Legal Environment • Political & Social Environment • Infrastructure
• Currency / Exchange Rate Control • LA Classic Marine Risks
Agenda
Economical background
Latin America Insurance premium Latin America Insurance market Type of coverages
Classic Marine Risks in Latin America
Low High
Impact to the marine insurance industry Nr of losses
-
+
Robbery Theft Turn over Nat Cat General Average Accumula tions Strike PiracyTHANK YOU
Special thanks to ALSUM and Swiss Re Economic
Research & Consulting for their statistical Input