|
|
|
Risk Management . . . por favor!(Risk Management in Latin America)by Stavros Costarangos What is happening in Latin America? Everything! From globalization, automation, deregulation, and competition to privatization. Risk and insurance do not escape this reality and changes are being felt in the market. Risk management as a discipline and management process is not well known throughout the region but there is a growing need for these issues to be discussed and researched. Little by little those involved in the process of buying insurance for corporations are adding the risk management ingredient to their performance. Although there are not many full time "risk managers" in Latin America, other corporate officials are fullfilling the risk managers duties in a partial manner. Such is the case with those in charge of Industrial Safety & Engineering, Comptrollers, Finance Directors, General Managers, etc. Only multinationals that have a presence in Latin America have had their local people deal with risk management issues at the time the corporate risk manager instructs on insurance placings and fronting arrangements (if it is the case) as well as with loss prevention and safety programs. There is a lack of formal education in risk management as it is not typically seen to be part of higher level university courses. Literature, books and other written information is not readily available, and when it is it is written in english. Not in "español" or "portugues". We must remember that Latin Americans are not insurance oriented individuals, as is the case with Americans who carry at all times and to some extent their five basic coverages: homeowners, car, life, health and liabilty. Local culture considers insurance as a luxury instead of a necessity. That is the case with insurance, so you can imagine what risk management has to go through to be learned, accepted and implemented. Nonetheless, there were pioneers in this aspect of promotion who are true risk managers. They met together back in 1993. In 1993 at the Orlando, Florida Risk & Insurance Management Society-RIMS Annual Conference, a group of risk managers from several Latin American countries joined together and formed the Latin American Risk & Insurance Management Association-ALARYS. ALARYS stands for Asociacion Latinoamericana de Administradores de Riesgos y Seguros. It comes at a time when changes are being witnessed by many due to what was mentioned earlier: globalization, automation, privatization, competition and deregulation. Also by the changes felt in the economical, political and cultural fronts. ALARYS was originally formed by member associations from:
A year later Panama joined ALARYS through APARYS (Asociacion Panameña de Administradores de Riesgos y Seguros). This same year in November 1994 ALARYS hosted it's first Congress in Cancun, Mexico attended by almost 400 participants. RIMS has given to ALARYS 100% support and both strongly believe that there is plenty to be done in Latin America and are taking action to promote risk management in the region. ADARA hosted the second ALARYS congress in Argentina in 1996 with almost 500 in attendance from all over the American continent as well as from Europe and Asia. And with superb timely topics such as: The Opening of Markets in the Region; Large Risks & Privatizations; Loss Prevention; Political Risks in Latin America; Worker's Compensation and A Market for Captive Reinsurance Companies. The future meetings of ALARYS will be in Venezuela in 1998 hosted by ASVARS, in the year 2000 in Panama hosted by ALARYS and in the year 2002 in Brasil hosted by ABGR. Keeping abreast with local developments and trends, Panama recently enacted legislation permitting the formation of captive insurance companies in its territory seeking to attract the Latin American business to the first SPANISH speaking domicile. There are many interested in promoting risk management in Latin America, and there are many Latin Americans interested in learning about risk management. It is a meeting of the minds that has to take place between those with the "know-how" and those with the "know-who". The language barrier must be surpassed and cultural differences must be taken into consideration. Efforts must be made by all involved to attend the different conferences, seminars and congresses that the Latin Americans organize. Translations of published information already available should be promoted; such is the case with "El Proceso del Manejo de Riesgo" by Dr. George L. Head, already in Spanish. The Internet should be also used to try and get to know better the Latin American market. You are just a couple of clicks away from visiting the following sites: http://www.ipanet.net
There are local and regional publications to which one must subscribe to keep updated on developments in the region on a business perspective as well to know what is going on the insurance market. The insurance market is almost completely deregulated in the region, allowing competition take its' way to benefit consumers as state owned monopolies are only seen in Costa Rica on the insurance sector and in Brasil on the reinsurance sector, which will soon be open to private integration. Our emerging markets are in constant change, making the management of our risks very particular to our countries with exposures that are somewhat similar to those in other areas. When analyzed in depth these risks should be addressed with the proper "atención". GRACIAS! Stavros Costarangos P. Read Panama's Domicile Showcase at captive.com...
|
|
http://www.captive.com/newsstand/articles/riskmgmt.html |
|