A solid and well prepared insurance market

In its latest country report, insurer ratings agency AM Best affirmed a stable outlook for Guatemala’s insurance sector amid the COVID-19 pandemic. “The COVID-19 pandemic has hit economies worldwide but its effects vary by country. At the moment, Guatemala stands out as a positive example in Latin America,” the agency stated, according to BNamericas.

“AM Best recognizes that growth prospects have become limited due to the effects of the COVID-19 pandemic. Nevertheless, Guatemala’s macroeconomic fundamentals provide stability to the system to mitigate the potential impact on claims and financial investments derived from the crisis,” the report adds, highlighting the effect of the economic downturn on premium generation due to the prompt economic stimulus package set in place by the government in response to COVID-19.

AM Best describes Guatemala’s insurance market as “solid” and “well prepared” to face an economic contraction, as the market is Central America’s third largest with a value of US$ 931 million.