Chancellor of the Exchequer George Osborne welcomed the decision by insurer Hiscox to join the Lloyd’s Brazil reinsurance platform during his current trip to Brazil. This will allow Hiscox to grow its Brazilian business, enabling it to talk directly to potential customers and better understand the local market.
The announcement was made on the day that the Chancellor met with leading members of the Brazilian insurance sector to discuss the key issues facing the industry at Lloyd’s Brazil’s headquarters.
Since Lloyd’s became the first international reinsurer to receive authorization to operate in Brazil following reforms to the market in 2008 it has grown into the second largest reinsurer in Brazil, with a market share of 12%.
Lloyd’s Brazil’s structure mirrors the unique market structure of Lloyd’s in London and, currently, ten managing agents have co-located ‘liaison offices’: ACE, ANV, Argo, Beazley, Catlin, Kiln, Liberty, Markel, Navigators, Starr and now Hiscox.
Lloyd’s has reaped the benefits of being onshore in Brazil. The ten managing agents with offices in Brazil have grown faster than those without – 112% average growth per year for those in Brazil compared with a Lloyd’s market overall average of 21% from 2008 to 2012.
The British government published an insurance growth action plan in December 2013 to enhance the position of the UK insurance sector as a global leader and increase its contribution to economic growth.
The action plan identified Brazil as a key target market for the growth of the UK insurance sector, and the government will develop a coordinated, targeted approach to promotional and other activity to help UK insurers grasp the available opportunities in Brazil.