According to Fitch Ratings, recent catastrophe bond and insurance risk letters (LRS) issuances within Latin America represent a strategic opportunity to expand and sophisticate the regions’ insurance debt market.
In a recent report released by the ratings agency, analysts outline how Latin America’s insurance debt market is currently undergoing a “significant change”, shaped by regulatory reforms, private credit expansion and fintech innovation.
At the same time, Fitch notes that persistent challenges, which includes transparency gaps, regulatory uncertainty, and macroeconomic risks, continue to hamper market development compared to peer emerging markets.
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