AM BestTV: Mexico’s Insurance Sector Tied to Fate of National Economy, Says AM Best Senior Director

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OLDWICK - JUNE 04, 2019 02:55 PM (EDT)
In this ^AMBestTV episode, Alfonso Novelo, senior director of analytics, AM Best, said the economic outlook for Mexico shows a possible slowdown ahead; however, given the lower penetration of insurance products, insurers still face growth opportunities. Click on http://www.ambest.com/v.asp?v=mexicoeconomy519 to view the entire program.

Novelo discussed the slowdown of Mexico’s economy.

“The deceleration might also impact the performance of the insurance industry. What is normal in the Mexican market is that it follows the economy. Given the adjustment on the projections for growth of the economy from a number of participants in the market, the central bank, the Ministry of Finance, investment banks, etc., AM Best believes that this will also affect top-line performance in the insurance market,” he said.

However, Novelo added that despite the economic issues, the insurance market still could weather the turbulence and achieve growth.

“There is a lot of potential in segments that have not been developed,” he said. “The capital levels of the companies and the size of the surplus that they have above the regulatory minimum of capital requirements are factors that could help the companies mitigate the impact from this volatility in the financial markets.”

AM Best has a stable outlook on Mexico’s insurance industry.

Recent ^AMBestTV episodes:

• Belt & Road, New Rules Boost Hong Kong Reinsurers: Ted Hodgkinson, head of corporate risk and broking, Hong Kong, Willis Towers Watson, said new rules put Hong Kong-domiciled reinsurers on a more equal footing with domestic Chinese reinsurers, giving them better market access: http://www.ambest.com/v.asp?v=hodgkinson419 .


• Outlook for Italian Non-Life Sector Remains Stable, Says Associate Director: Michael Dunckley, associate director, AM Best, said Italian non-life insurers should be bolstered by growth in liability and health coverages: http://www.ambest.com/v.asp?v=italynonlife_english419 .


• AM Best Marks Five Years in Mexico City: Insurers and AM Best staff gathered to discuss developments in the Mexican insurance market and the role of credit ratings: http://www.ambest.com/v.asp?v=mexicoanniversary519_english .

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episodes at http://www.ambest.com/multimedia/ambtvsignup.html . View ^AM BestTV episodes at http://www.ambest.tv .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.