60 seconds with…Gabriel Anguiano
Mon 18 Jun 2012
One of the key elements of Vision 2025, launched earlier this year by Chairman John Nelson, is growing Lloyd’s footprint in countries with developing economies.
It sets out that Lloyd’s growth, over the cycle, should at least match GDP growth in individual countries and in some fast growth territories we should be looking to exceed this.
Mexico is a perfect example of a high growth economy. By premium, the biggest market for Lloyd’s in Latin America with plenty of opportunity to grow and expand as the market develops.
Gabriel Anguiano, who has headed up the Mexico Desk at Lloyd’s since 2010, works closely with the market to develop a better understanding of the Mexican (re)insurance market and forge new relationships to increase Lloyd’s business there:
Tell us a bit about Latin America’s second largest insurance market...
Our Vision 2025 strategy lists Mexico as one of the priority markets from where, by 2025 we want to be doing more business, bringing in more capital and attracting more talent.
Mexico is not just the second largest insurance market in Latin America overall, it is the largest reinsurance market. Because of its exposure to catastrophes it transfers more risk to the global industry than the rest of the region. This presents huge potential for Lloyd’s.
Mexico is exposed to a high number of catastrophes and was recently shaken by a series of earthquakes. What does this mean from a Lloyd’s perspective?
Thankfully the earthquakes so far this year haven’t had much of an impact - both in terms of casualties and losses - because they affected areas that are relatively undeveloped.
But they are a reminder to underwriters of the risk in Mexico – that a big loss could happen – and are likely to have an impact when it comes to renewing some of the programmes. Lloyd’s is a very important catastrophe reinsurance market for Mexican risk.
While earthquake has the potential to cause a sizable loss, the recurring risk for Lloyd’s in Mexico is hydro risk including heavy rain, hurricane and flooding. 2010 was the last big catastrophe year for the market with a number of hurricanes and a lot of flooding. But 2011 and 2012 so far have been comparatively less affected.
What work have you been doing with the Lloyd’s Market Intelligence team to develop opportunities in the Mexican market?
On this front, my role is to develop the local knowledge and to obtain the best quality statistics on the market. We can then develop market intelligence reports, the most recent of which is the Mexico Class Review, providing detailed statistics on the Mexican insurance and reinsurance markets by class of business showing profitability, premium and trends. The aim is to help Lloyd’s market participants – brokers and underwriters – to develop their plans for Mexico.
This year one of our main activities was the Lloyd’s-hosted Mexico Insurance Day, which took place during the wider “Mexico Week”, organised by the Mexican British Chamber of Commerce.
We had a series of presentations and workshops here at Lloyd’s market on the Mexican insurance industry and opportunities for Lloyd’s. There were numerous speakers and delegates from Mexican insurance industry and government.
What are your plans for the rest of 2012 to develop Lloyd’s involvement in the market?
I travel back home to Mexico four times a year and next week is my second visit of 2012. It coincides with the local insurance association’s (AMIS) annual convention and I will be speaking to over 2,000 people about Lloyd’s.
The aim of this is to help the local market understand Lloyd’s Chain of Security in more detail. This year – as a result of the financial crisis in combination with the catastrophe losses of last year – local insurance companies have become more interested in the security of the reinsurers they work with.
So it’s important that we explain that Lloyd’s remains well capitalised, that we retain our A/A+ credit rating and more about the Central Fund and the asset side, such as where does Lloyd’s and the Central Fund invest its capital and its premium.