Best’s Market Segment Report: AM Best Maintains Stable Outlook on Chile’s Insurance Industry

MEXICO CITY--(BUSINESS WIRE)--AM Best is maintaining its stable outlook on Chile’s insurance industry, citing sustained profitability, sound reinsurance structures and abundant capacity.

The Best’s Market Segment Report, “Market Segment Outlook: Chile Insurance,” notes that the country’s insurance market posted improved year-over-year results in its life and non-life segments during 2025. As of June 2026, both segments remain profitable, albeit lower as compared with the same period in 2025. Life insurance continues to lead in premium growth while the non-life segment remains impacted by intense competition and a deceleration in economic growth.

“Intense competition in Chile’s main property segments could further pressure prices and narrow margins, while global uncertainty due to adverse geopolitical developments could impact the Chilean economic landscape,” said Inger Rodriguez, CPCU, senior financial analyst, AM Best. “However, with the insurance segment demonstrating resilience and increased sophistication, AM Best expects growth in the range of 5% to 9% for Chile’s insurance industry in 2026, with improving expectations for 2027.”

As the fifth-largest insurance market in Latin America with the second-highest insurance penetration rate (almost 5% of GDP), Chile remains at the forefront of regulatory framework strengthening in Latin America. Its regulator, the Financial Market Commission of Chile, has defined, as part of its strategic objectives, the implementation of IFRS 17, and aims to complete implementation by 2029. IFRS S1 and S2 standards, regarding sustainability and climate change, were adopted by the insurance industry starting in 2026.

Despite expectations of a Super Niño, the reinsurance market continues its soft cycle, with Chilean insurers reporting overall flexible conditions, abundant capacity, and discounts up to 15% in catastrophe lines during summer renewals. The insurance market in Chile is well-protected, as most participants hold comprehensive reinsurance structures with highly rated reinsurers, global and regional. AM Best will continue to monitor system capital and the risk management framework, as well as the strengthening of the Chilean regulatory system.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=369461.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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