Kathmandu. Despite major regulatory reforms, the environment remains challenging for insurers in Argentina.
According to a report by credit rating agency AM Best, high inflation, currency devaluation and investment uncertainty are putting pressure on insurers to maintain solvency ratios. “At the same time, capital management is becoming more difficult for companies,” the report said.
Argentina’s insurance sector is undergoing significant regulatory changes aimed at improving solvency, market transparency and oversight, according to AM Best. “In 2024 and 2025, Argentina’s National Insurance Supervision (SSN) implemented significant changes to the General Insurance Activity System (RGAA),” the report said, including higher and more consistent minimum capital requirements. Consumer protections have also been strengthened. ’
“Argentina’s economy is slowly stabilizing, and real GDP is expected to recover strongly in 2025 and 2026 with a significant reduction in inflation after two years of recession,” said AM Best. “The economic and political impact of US aid to Argentina is uncertain,” the rating agency said.
In its report titled ‘Stabilization and restructuring: Argentina’s economic recovery and insurance sector reforms under pressure’, AM Best suggests that these reforms and macroeconomic stabilization efforts can support a more transparent, disciplined and resilient insurance market in the medium term.
