Anticipating Uncertainty, a LatAm Perspective
23 October 2020
During a time of uncertainty with the Global pandemic not disappearing quickly as many had hoped, countries across Latin America continue to face numerous challenges. Social unrest is not a new development in this region with poverty, inequality, poor public services and political corruption often leading to civil unrest. Governments handling of COVID-19 ‘lockdown’ measures have arguably exacerbated already fraught issues and as a result the region has seen even more dissent.
In Chile, following the riots of October 2019 the losses both uninsured and insured are expected to be over USD2bn from the physical damage and subsequent looting in connection with mass protests. Whilst Strikes, Riots and Civil Commotion is not a new issue in Latin America – this level of damage to businesses is unprecedented.
Prior to October last year, Chile was perceived to be one of the most stable countries in the region. Throughout 2020 the pandemic may have temporarily supressed the unrest in Chile and other neighbouring countries, however, the underlying issues are yet to be resolved and as governments come under renewed pressure, further unrest is likely to continue for the foreseeable. As expected, further social disobedience and unrest reignited to mark the one-year anniversary of the nationwide protests and is expected to continue during the run up to the referendum on the 25th October and thereafter.
The War, Terrorism and Political Violence market have written business in the region for more than 25 years and continues to provide solutions for clients. The unparalleled losses have resulted in the Property market’s exclusion of SRCC perils within the region, which has led to the War, Terrorism and Political Violence market taking on more exposure with pricing reflective of the evolving and deteriorating risk profiles.
Outside of Chile, the following countries are also facing similar issues:
- Due to COVID-19, the protests were not as prevalent as expected during the run up to the elections in Bolivia (18th October 2020), however, the underlying issues maybe dormant, but still prevalent.
- Historically, violent protests are not uncommon in Colombia, the country has seen many years of discontent. The current anti-police protests which have seen many deaths and presented a growing concern for the country.
- Similarly, the main drivers of unrest in Mexico throughout remaining months of 2020 into 2021 to be high job insecurity and an increase in unemployment.
Our specialist team in London have a wealth of experience in structuring and placing distressed business into the London Market and provide solutions best suited to meet you and your clients’ needs. Our clients know that we are directly available to them whenever they need us. Our added value comes in the form of our dedicated, Spanish-speaking Latin America team, who work closely with us and all divisions within Price Forbes to fully understand our clients’ specific needs.
We are looking forward to expanding further within the LATAM region, providing solutions for clients requiring solutions for SRCC perils.
Please contact the team
SRCC – Sophie Gradwell or Edward Black
Latin America – Oscar Rincon or Ernesto Llumigusin