Argentina’s insurance sector faces ongoing challenges amid regulatory reforms, says AM Best

AM Best, the credit rating agency, reports that Argentina remains a challenging environment for insurers despite major regulatory reforms.

High inflation, currency depreciation, and investment uncertainty continue to pressure solvency ratios and complicate capital management, according to AM Best’s latest commentary.

The agency notes that Argentina’s insurance sector is undergoing significant regulatory changes intended to improve solvency, market transparency, and oversight.

In 2024 and 2025, the Superintendency of Insurance of the Nation (SSN) implemented major updates to the General Insurance Activity Regime (RGAA), including higher and more harmonised minimum capital requirements. Consumer protections have also strengthened.

AM Best highlights that Argentina’s economy is gradually stabilising, with real GDP expected to rebound strongly in 2025 and 2026 after two years of recession, accompanied by a substantial reduction in inflation. The agency adds that the economic and political impact of U.S. aid to Argentina is still uncertain.

In its report, “Stabilisation and Overhaul: Argentina’s Economic Recovery and Insurance Segment Reform Under Pressure,” AM Best emphasises that these reforms and macroeconomic stabilisation efforts could support a more transparent, disciplined, and resilient insurance market over the medium term.

However, AM Best cautions that challenges persist for foreign insurers, particularly in accessing reinsurance markets or completing cross-border transactions. Exchange rate restrictions and limited hard currency availability can create bottlenecks, while joint resolutions from tax and trade authorities, combined with central bank regulations, have led to delays in transferring reinsurance premiums to foreign reinsurers.

“At the same time, while new regulatory requirements may benefit larger insurers, they are likely to challenge smaller players, potentially prompting consolidation ahead of a mid-2026 compliance deadline,” said David Lopes, Senior Industry Analyst, AM Best.

“Ongoing restrictions on capital mobility, foreign exchange and reinsurance flows continue to hinder operational flexibility, particularly for foreign-domiciled insurers, though new digital tools and policy measures may help improve oversight and transparency over time,” added Ann Modica, Director, AM Best.