Chile insurance market remains stable
Chile’s insurance industry remains stable, with abundant capacity and sound reinsurance protection, according to AM Best. The ratings agency is maintaining its stable outlook on the market, citing improved year-over-year results in the life and non-life segments during 2025.
By mid-2026, Chile’s insurance market continues to turn a profit in both life and non-life categories, though earnings have dipped compared to the same timeframe in 2025. Still, the non-life sector faces headwinds from strong competition and a deceleration in economic growth.
AM Best predicts the Chilean insurance market will expand by 5% to 9% in 2026, with improving expectations for 2027. Chile ranks as Latin America’s fifth-largest insurance market and boasts the region’s second-highest insurance penetration rate, almost 5% of GDP.
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The property/casualty market accounts for a third of premiums, with protection for earthquakes, tsunamis, and fires representing the leading segment, accounting for almost 45% of non-life premiums. As of June 2026, 34 life and 32 non-life companies are operating in Chile. Furthermore, the motor segment accounts for a quarter of non-life premiums, while liability accounts for less than 10%.
Even with expectations of a Super Niño, the reinsurance market continues its soft cycle, with Chilean insurers reporting overall flexible conditions, abundant capacity, and discounts up to 15% in catastrophe lines during summer renewals, according to Best. It said the insurance market in Chile is well-protected, as most participants hold full reinsurance structures with highly rated global and regional reinsurers.
