A.M.BestTV: Solvency Rules Shape Mexico’s Risk Culture

OLDWICK, N.J.--()--In this final of five June 2015 “First Monday” episodes, A.M. Best's new managing director in the agency’s Mexico office, Manuel Calderón, discusses his country’s Solvency II-type regulatory regime and how it is working to balance risk and growth. Click on http://www.ambest.com/v.asp?v=fmmexico615 to view the entire video program. “First Monday” is A.M. Best’s monthly program featuring commentary by the company's leading analysts.

The Mexican insurance market is the second largest insurance market in Latin America behind Brazil and has steadily grown in recent years. Accompanying this growth is an evolving regulatory framework to which A.M. Best has responded by opening the Mexico City office and creating a national rating scale. Calderón speaks about this regulatory framework. “Mexico has made some changes in the laws and the rules for insurance companies, in order to duplicate a supervision model like Solvency II,” said Calderón. “Mexico’s model has three pillars: quantitative issues, corporate governance of companies and transparency and disclosure to the market. In this arrangement, the rating agency plays a very important role.”

Calderón is optimistic about the growth potentials in Mexico. “Presently, Mexico has 2% gross domestic product (GDP). In order for Mexico to achieve its goal of more than 5%-6% GDP, major revisions in the laws were made to allow insurance companies to be very close to a risk-based capital model like Solvency II.”

Please visit http://www.ambest.tv under Conferences/AMIS 15 section for full-length interviews from the recent Mexican Association of Insurance Institutions Conference, held by Asociación Mexicana de Instituciones de Seguros (AMIS) in Mexico City.

Recent episodes of A.M.BestTV include:

  • ‘First Monday’: As the Social Security Disability Insurance Fund Dries Up, Insurers Prepare: Senior Financial Analysts Kate Steffanelli and Michael Adams discuss how the U.S. disability fund is projected to run empty in 2016 and the potential positives and negatives for affected disability insurers: http://www.ambest.com/v.asp?v=fmdiability615.
  • ‘First Monday’: Stagnant Life/Health Sector’s Pulse Quickens: Senior Financial Analyst Thomas Zitelli and Financial Analyst Frank Walko discuss how the U.S. life/health insurance industry performed in 2014, exploring positive retirement market trends amid interest rate and reinvestment risks: http://www.ambest.com/v.asp?v=fmlifehealthresults615.
  • ‘First Monday’: Insurers Warming Up to Social Media: Vice President Stephen Irwin and Senior Financial Analyst Joan Sullivan speak about a survey A.M. Best conducted where two-thirds of respondents from the insurance industry expressed the belief that their company’s social media strategy needs improvement: http://www.ambest.com/v.asp?v=fmsocialmedia615.
  • ‘First Monday’: Rising Drone Use Brings Risks Into View: Assistant Vice President Henry Witmer explores the multitude of liability exposures brought by expanding commercial drone use and the underwriting challenges insurers face: http://www.ambest.com/v.asp?v=fmdrones615.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.

Copyright © 2015 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.

Contacts

A.M. Best Company, Inc.
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best Company, Inc.
Lee McDonald, 908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com