21/01/2025
Latin American exports on the rise: Keys to protect your foreign trade
Foreign trade in Latin America and the Caribbean recorded a significant rebound in 2024. This growth not only marks an economic milestone, but also presents new opportunities and challenges for the insurance industry, especially in transportation and logistics insurance.
In 2024, Latin America and the Caribbean experienced a 4.1% increase in exports, a positive turnaround after a 1.6% contraction in 2023, according to the Inter-American Development Bank (IDB). This growth was driven by the increase in exported volumes, while commodity prices, with some exceptions such as coffee (+57.7%) and copper (+9.4%), remained relatively low.
Countries such as Argentina stood out with a notable 18.1% increase in exports, after a significant drop in 2023. This performance reflects a regional effort to recover foreign trade dynamism, despite a challenging global context.
Keys to protect your foreign trade
If your company is part of this wave of growth in foreign trade, securing your operations is essential to avoid unexpected risks. Here we share with you the keys to protect your goods and guarantee the success of your transactions:
- Insure your transportInsurance: Take out land, sea or air transport insurance policies that cover damages, losses and delays. These coverages are essential to minimize risks associated with the transit of goods.
- Protect your supply chain: Logistics chain insurance allows you to address risks of disruptions, theft or transportation failures that can impact your operations.
- Tailor coverage to your industry: Every industry has specific needs. For example, if you operate in mining, it is crucial to have machinery and equipment insurance that covers accidental damage or total loss.
- Incorporate technology into risk management: Use digital tools to monitor shipments in real time and evaluate data to optimize your underwriting decisions.
Impact on the Insurance Sector
The growth of foreign trade has direct implications for the insurance market, especially in lines of business related to transportation and logistics. As more goods cross borders, companies are looking for solutions to ensure that their goods are protected against risks such as damage, theft, delay and total loss in transit.
In addition, key sectors such as agriculture and mining, which have been drivers of exports in the region, demand specific coverage. However, the insurance market faces structural challenges. With an insurance penetration of 3% in the region, compared to the global average of 7.1%, there is a significant gap that represents both a challenge and an opportunity.
Hanseatica secures the future of Foreign Trade
Foreign trade is a key economic driver for Latin America and the Caribbean, fueling the growth of companies in multiple sectors such as agriculture, mining and manufacturing. This recent export boom also brings with it new risks that can jeopardize the continuity of your business operations.
At Hanseaticawe not only understand these challenges, but we offer solutions specifically designed to meet the needs of exporting companies. With over 16 years of experience in the insurance industry, we specialize in transportation and logistics insurance, designed to protect your goods against unforeseen events such as theft, damage, delays and total loss.
Our focus doesn't stop at policies: our team of experts is ready to provide you with strategic advice and support at every stage of your operations. Whether you transport goods by land, air, sea or inland waterway, we help you minimize risks and maximize opportunities in foreign trade.