Amidst increasing volatility, pressure on capital efficiency, and a transformation in risk management, captive and cell structures are gaining prominence as strategic tools within the reinsurance market in Latin America, according to Ms Veronica Bersh, Head of ART at Active Re.
She said, “I believe this shift reflects a structural evolution in how organisations approach risk, moving from a traditional transfer model to a more active one, where retention and financial optimisation play a central role.”
She shared her perspectives on captives and cells during the Barbados Risk and Insurance Management Conference (BRIM), where Active Re highlighted the growing relevance of ART solutions in the region.
“Based on my experience in the development of structured solutions, I observe that these structures allow companies to optimise cash flow, capture underwriting results, and access global reinsurance capacity more efficiently.”
She pointed out that in Latin America, a clear transition is underway: companies are moving away from relying exclusively on the traditional market and are taking a more active role in the strategic management of their risks. Captives and cells make it possible to structure this decision with financial discipline, optimise the use of capital, stabilise results, and facilitate access to global capacity under more efficient conditions.
The challenge is not only to implement them, but to develop the capabilities, data, governance, and disciplined claims management that truly sustain their value over time.
Shift is not only about risk transfer, but about managing it more strategically
Ms Bersh said, “In terms of opportunities, I believe the growth of these structures is creating room for greater sophistication in the regional market, particularly in the management of complex risks, emerging lines, and tailored programmes for corporate groups.
“However, I also note that their sustainability will depend on critical factors such as the quality of information, governance discipline, access to excess traditional coverage, and alignment with the financial strategy of organisations.” M