The global economic recovery after the pandemic slowed in 2023, recording growth of 2.6% (down from 3% in 2022). This was driven by the energy crisis in Europe, a first half of the year marked by interest rate hikes by the Federal Reserve to combat inflation, the collapse of several banks in Silicon Valley, and the impact of the conflicts in Ukraine and the Middle East.

Latin America also recorded a slowdown in its economy, with growth of 2.2% in 2023 (3.9% in 2022). The main factors behind this trend were the fight against inflation through interest rate increases by central banks, restricted access to financing, stagnation in trade, and changes in leadership in the governments of Brazil, Argentina, and Ecuador.

In an initial approach to the outlook of the marine insurance market in the region, ALSUM compiled premium and claims figures from seven countries to analyze the performance of marine insurance in 2023. Overall, the region grew slightly above the pace of the economy, with the exception of Chile, which recorded a decline in cargo and hull insurance.

Brasil

The Brazilian economy grew by 2.9% in 2023, largely thanks to the highly efficient agricultural and livestock sector, which recorded a record 15.1% increase in soybean and corn production. Exports fell by 1% compared to the previous year, and inflation stood at 4.73%.

Marine insurance premiums grew by 11.6%, while claims declined by 1.8%.

México

The Mexican economy recorded growth of 3.2% in 2023, within which the sector that posted the largest increase was construction, reaching an expansion of 15.6%. Exports grew by only 2.6% compared to the previous year, and inflation stood at 5.54%.

Marine insurance premiums grew by 34.6% (driven by the impact of PEMEX’s biennial hull policy), and claims increased by 196.2% (Hurricane Otis).

Argentina

The Argentine economy contracted by 1.6% in 2023 due to persistent macroeconomic imbalances and a severe drought that caused a 26% decline in agricultural production compared to the previous year. Exports decreased by 24.5%, and inflation reached 121.7%.

Marine insurance premiums grew by 19.4%, and claims increased by 21%.

Chile

The Chilean economy grew by a modest 0.2% in 2023. The contraction in trade was 3.5%, driven by retail sales and the automotive sector, while domestic demand declined by 4.2%. Exports grew by only 2.6% compared to the previous year, and inflation stood at 5.54%.

This trend is reflected in a 6.4% decline in marine insurance premiums, although claims also decreased by 38.4%.

Colombia

The text analyzes parametric insurance for cargo transport, its historical evolution, Colombia’s Law 2294 that enables its use, the role of technology in cargo monitoring, and the actuarial challenges, concluding that it represents an innovative opportunity with implementation challenges.

Marine insurance premiums grew by 4.1%, and claims increased by 50%.

Ecuador

In 2023, Ecuador’s Gross Domestic Product (GDP) grew by 2.4%. This growth was driven by the dynamism of government spending, which increased by 3.7%. Exports decreased by 5% compared to the previous year, and inflation stood at 2.4%.

Marine insurance premiums grew by 6.1%, and claims increased by 42.1%.

Perú

The Peruvian economy contracted by 0.55% in 2023. The sectors that drove this decline were construction (-5.6%), manufacturing (-4.8%), fishing (-3.6%), and agriculture and livestock (-2.1%). Exports grew by 2.2% compared to the previous year, and inflation stood at 6.5%.

Marine insurance premiums grew by 7.5%, while claims decreased by 48.1%.