Captives and Cells and the Evolution of Reinsurance in Latin America
By Verónica Bersh, Head of ART at Active Re
ARTICLE
In a context of 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.
From my role as Head of ART at Active Re, 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.
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.
In Latin America, we are seeing a clear transition: 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.
· The shift is not only about transferring risk, but about managing
it more strategically.
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 programs 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.
I shared these perspectives during the Barbados Risk and Insurance Management Conference (BRIM), where Active Re highlighted the growing relevance of ART solutions in the region.
At Active Re, we see the development of captives and cells as a strategic opportunity to support our clients in building more efficient, flexible, and market-aligned risk strategies.
With a vision focused on innovation, capital efficiency, and sustainable value creation, we reaffirm our commitment to advancing structures that enable our clients to make more informed decisions and achieve greater long-term financial stability.
About Active Re:
Active Re is a Barbados-based reinsurer established in 2007. The company comprises 91 professionals located in 17 cities across 15 countries around the world, maintains a diversified geographic business presence in 129 countries across Latin America, the Middle East, Europe, and Asia Pacific, and focuses its underwriting efforts on short-term, non-catastrophic risks.
For more information about Active Re: www.active-re.com. For the latest AM Best's Credit Rating, access www.ambest.com.
