OREANDA-NEWS. A.M. Best América Latina, discusses the pace of modernization among Latin America’s regulatory regimes.

“Three countries that A.M. Best believes are in the lead in terms of the implementation of a Solvency II-type framework are Brazil, Mexico and Chile,” said Novelo. “Following behind those (countries) are Peru, Colombia and Costa Rica, which are making some efforts. However, those efforts are fragmented.”

Novelo also said that the remainder of Latin America countries lags far behind in terms of implementing a Solvency II-type framework. He believes these countries still have a lot of missing pieces, which are needed to implement this type of regulation.

Concerning the future, Novelo sees many challenges and opportunities for these economies.

“Their financial systems need to evolve further,” said Novelo. “There is also some lack of talent when it comes to economic and actuarial models, which needs to be addressed. Nevertheless, A.M. Best anticipates an uptick in mergers and acquisitions.”