Market Research Reports - Ken Research Economic Liberalization in Latin America-How is it

Latin America Insurance Industry Market Research Report: Ken Research
The report titled “Economic Liberalization in Latin America-How is it Affecting Insurance?”,
provides a comprehensive analysis of economic liberalization in Latin American regions. This
report covers what is economic liberalization, effects of economic liberalization, effect of
economic liberalization in Latin American regions, economic liberalization affecting insurance
and future effects of economic liberalization.
What Is Economic Liberalization: Establishing opportunities with the rest of the world with
respect to trade, regulations, taxation and other sectors which affects the business in the
country is termed as “Economic Liberalization”. With steady economic growth within a country
it is easy to estimate the level a country is liberalized economically and how easy it is to invest
and do business in the country. Almost all the developed countries experienced liberalization
process and the emerging countries are yet to experience it.
Investments in the emerging countries may hamper due to few barriers such as tax laws,
foreign investment restrictions, and legal issues and accounting regulations, all of which make it
difficult or impossible to gain access to the country. Therefore, economic liberalization process
relaxes such barriers and relinquishing some control over the direction of the economy to the
private sector. This trend often involves some form of deregulation and privatization of
companies in the emerging countries. The main goal of economic liberalization is the free flow
of capital between nations and the efficient allocation of resources. It is usually involves
reduction of tariffs, trade laws and other trade barriers. When a country is liberalized, stock
market values also rise. Majority of the fund managers and investors are interested in lookout
for new opportunities for profits. Therefore, a huge investment in the emerging countries leads
to a flow of capital. Economic liberalization reduces the political risks to investors.
Economic Liberalization Affecting Insurance: Latin America is an attractive and profitable
region for global insurers who are facing a sluggish growth. Latin America has low insurance
penetration and therefore, has a capacity for strong growth in income per capital which is the
key asset for insurers. The political and economic conditions vary and overall the region has a
bright outlook. Latin America is a region with the combination of rising incomes, rising
penetration and large offshore energy-related projects which will strengthen the demand for
personal and commercial non-life insurance products.
Brazil accounts for a major share in the insurance market in Latin America. Majority of the
insurance companies utilize advanced technologies such as digital transformation to drive
efficiency, improve profitability and increase penetration. Majority of the insurance companies
are able to maintain marginal profitability despite the economic downturn in Latin America and
this trend is expected to continue in the near future. Brazil is making structural reforms after