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Argo Group is to open a Miami office in November as part of its bid to expand the breadth of its products and reach in the Latin America region.
Bermuda Re’s sister publication Intelligent Insurer interviewed Jorge Luis Cazar León, head of Latin America at Argo Group, who explained that the new office is expected to begin underwriting in January 2018.
León said that Argo sees significant growth opportunities across the region, despite the “difficult economic conditions” of the last few years, adding that the re/insurer is also in the process of launching a diverse suite of coverage solutions that will span reinsurance, property and casualty and the personal lines markets.
In February 2017, Argo Group acquired Ariel Re, a Bermuda-based reinsurer, a move that significantly bolstered Argo Group’s reinsurance offering. The acquisition, combined with Argo Group’s expertise in facultative and treaty products makes the company “well-placed to penetrate the Miami reinsurance hub”.
“A rise in disposable income will push Latin America’s expanding, thriving middle class to insure their newly acquired assets and boost the personal lines market,” said León. He expects an increase in demand from small and medium-sized enterprises and large corporations for P&C insurance driven by new infrastructure and capital flowing into the region.
“Cyber is also key. As businesses in the region have become more technologically advanced, they are now at a higher risk of experiencing a cyber attack,” added León. Despite the growing threat, few cyber insurance products have entered the Latin America market.
“For insurers with the requisite expertise, cyber represents an untapped market primed for growth” he claimed, adding that disruption is happening across the market.
“The digital revolution has impacted both developed and emerging markets, and Latin American insurers are facing critical questions about how they will revamp their operations, improve their service and shorten the time it takes to process claims,” he explained.
Although many view disruption as a negative, León claimed that Argo Group sees technological developments as the “tools to refine and expand” its capabilities to better meet client needs.
Argo Group, Jorge Luis Cazar León, New office, Miami, Latin America, Bermuda