Political change is reshaping parts of Latin America, with new pro-market administrations taking office in Colombia and Peru while Argentina continues its economic liberalisation drive. Although each country faces distinct challenges, their governments share a similar objective: creating a more attractive environment for investment.
For insurers, these developments are sparking renewed interest in the region. As governments seek to stimulate growth, opportunities could emerge to provide cover for a wave of new business and infrastructure projects. The key question now is whether these administrations can translate ambition into execution.
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Can Colombia attract capital again?
Right-wing populist candidate Abelardo de la Espriella narrowly won Colombia's presidential election, succeeding Gustavo Petro after a four-year term.
The election result represents a sharp shift in policy direction. While Petro's administration focused heavily on social reform and environmental transition, De la Espriella has pledged to prioritise economic competitiveness, public security and investor confidence.
The backdrop to this change is a period of subdued investor sentiment. Foreign direct investment declined steadily during Petro's presidency and by 2025 stood around one-third lower than in 2022. Regulatory uncertainty and concerns around economic policy were cited as factors weighing on investment decisions.
The new administration is seeking to reverse that trend. Energy policy provides a clear example, with De la Espriella pledging to restart oil exploration and permit fracking, effectively rolling back key aspects of the previous government's agenda. Infrastructure development is also expected to feature prominently. As investment activity accelerates, demand for a range of insurance products is likely to increase in tandem.
However, uncertainty remains. Colombia's fiscal constraints and the president's relatively narrow electoral mandate may limit the pace and scale of reform. For insurers, the challenge will be assessing how quickly policy intentions translate into project activity and insurance demand. Monitoring investment trends and sector-specific growth indicators will be essential as the market evolves.
Peru’s plan for regulatory simplification
Peru's new president, Keiko Fujimori, has similarly pledged to prioritise private investment and energy sector development. Central to her administration's agenda are plans to simplify regulation and streamline permitting processes across the energy and extractive industries.
Mining remains one of Peru's most important economic sectors, but persistent bureaucratic delays and regulatory complexity have constrained development. The new government hopes that by reducing these barriers to project approvals, investment will be unlocked and competitiveness improved.
But faster permitting alone is unlikely to be enough. Sustained growth will also depend on addressing institutional capacity questions, infrastructure constraints, and questions on the future of state-owned energy companies. While the government’s plans have been viewed positively by investors so far, the project pipeline will inevitably take time to build momentum.
For insurers, understanding where projects are progressing and how regulatory changes are being implemented on the ground will be key. Market conditions can evolve quickly when governments pursue reform agendas, creating both new opportunities and emerging risks.
Argentina adds insurance to the deregulation agenda
Few leaders in recent Latin American history have pursued economic reform as aggressively as Argentina's Javier Milei. Since taking office in 2023, his "shock therapy" programme has revived optimism about the country's economic outlook, with the government showing little sign of easing its commitment to market liberalisation.
The insurance sector is the latest industry in line for regulatory reform.
In July, Milei announced plans that would significantly alter insurance regulation. Under the proposed framework, insurers would be free to design and launch products without prior regulatory approval, while supervisory authorities would focus more narrowly on solvency oversight and consumer protection.
If implemented, the reforms could unlock innovation, giving insurers greater flexibility to develop new products and respond more quickly to customer needs. While the legislation has yet to be formally introduced, the proposal is already attracting attention as a potentially significant growth opportunity for the sector. Keeping pace with these developments will be essential as reforms progress from announcement to implementation.
Opportunities amid uncertainty
Across Latin America, governments are increasingly focused on accelerating investment and improving economic competitiveness.
For insurers, these shifts could bring substantial opportunities. Increased infrastructure spending, energy investment, commercial expansion and regulatory reform all have the potential to drive insurance demand and create new market opportunities.
But policy direction is only part of the story. In Colombia and Peru, the success of reform agendas will depend on governments' ability to overcome fiscal, political and institutional constraints. In Argentina, the benefits of deregulation will ultimately rest on how insurance reforms are implemented.
That makes market intelligence more important than ever. Insurers need to understand not only what governments are announcing, but how regulatory developments, economic conditions and investment trends are influencing the insurance landscape in each market.
The region warrants close attention for insurance companies. While the pace and success of change will vary across markets, renewed efforts to attract investment could support insurance market growth in the years ahead.
For deeper insight into market trends, regulatory developments and political developments across Latin America and more than 170 countries, explore Axco’s Insurance Market Reports.