As previously discussed in this space, a new draft insurance law (see here, here, here and here) and nationalization of private property (see here) have caused significant concern among insurers and reinsurers about doing business in Venezuela. These concerns, however, continue to be at least somewhat counterbalanced by impressive growth in the country’s insurance market. This trend continued in the first five months of 2009, with total premiums for the premium totaling more than 11 billion bolivares, a 38% increase over the same period in 2008.
The Venezuelan market is also seeing local insurers seeking to take a greater role in the local market and in other Latin American markets. For example, Seguros Constitucion, a conglomerate of Venezuelan insurance companies, has over the last year risen to the sixth largest insurer in Venezuela (with the highest growth rate in the market) and has established a presence in Ecuador, Panama and the Dominican Republic.