CHILE Trends and Developments Contributed by: Daniel Silva and Pía Parmar, Silva & Parmar Abogados
General Economic Overview of the Insurance and Reinsurance Market in Chile The insurance and reinsurance market in Chile is undergoing a profound transformation, driven by eco- nomic, regulatory, technological and social factors. In recent years, the industry has demonstrated remark- able resilience in the face of global volatility, adapting to new regulatory requirements and to the emergence of novel risks, such as cyber risks and those arising from climate change. According to a recent study published by Fundación Mapfre on the insurance market in Latin America, in 2024 the Chilean insurance market consolidated its position as one of the most developed in the region, ranking second in terms of premium penetration relative to GDP, at 4.6% (surpassed only by Puerto Rico, and well above the Latin American average of 3.2%). This leading position is explained in part by the maturity of the annuities system and the integra- tion of insurers into public policies, particularly in the pensions field. Direct premiums amounted to USD15.0663 billion, representing a nominal increase of 6.7% and a real increase of 2.6%. The life segment was the main driver, with a nominal increase of 7.7% and a real increase of 3.6%. Indi- vidual life insurance (+15.9%) and annuities, which account for more than half of the branch, stood out. By contrast, the non-life segment grew by 5.5% in nominal terms and only 1.5% in real terms, with mixed results: while health (+13.7%) and credit and surety (+18.6%) showed dynamism, motor insurance declined (-1.5%). As regards structural indicators, insurance penetration reached 4.6% of GDP, density amounted to approxi- mately USD750 per capita, and the deepening of the life branch stood at 54.8%. Finally, the insurance pro- tection gap was estimated at approximately USD10.8 billion, equivalent to 0.7 times the actual market, evi- dencing a significant potential for expansion.
Natural Catastrophes and Market Resilience During 2024 and 2025, Chile faced a series of emer- gencies that have left a mark on its population and economy. In February 2024, the forest fires in the Valparaíso Region became one of the most severe episodes of the last decade. The National Service for Disaster Prevention and Response (SENAPRED) reported that thousands of hectares were consumed by the flames, mainly affecting Viña del Mar and Quilpué. Direct loss- es were estimated at more than USD1.2 billion, with hundreds of homes destroyed and a significant social impact. Subsequently, in June 2024, heavy rainfall caused floods and mudslides in Maule and Biobío. The Min- istry of the Interior assessed the damages at USD500 million, mainly affecting public infrastructure, roads and agricultural sectors. The year 2025 began with a major seismic event. In January, an earthquake of magnitude 7.4 in the Antofagasta Region caused damage to dwellings, roads and ports. SENAPRED estimated direct losses at approximately USD2 billion, although the country’s seismic preparedness helped to mitigate the human impact. Finally, in July 2025, a new cycle of adverse weather fronts caused flooding in the Metropolitan Region and O’Higgins. Direct losses amounted to approximately USD350 million, affecting dwellings and local com- merce. Taken together, the natural disasters that occurred in Chile during 2024 and 2025 resulted in direct losses exceeding USD4 billion, reflecting both the vulner- ability of the territory and the need to strengthen risk management and climate resilience. Recent and Ongoing Regulatory Changes Pension reform (Act No 21,735) The enactment of Act No 21,735 in March 2025 marks a milestone in the Chilean pension system, creating a new mixed pension scheme and social insurance within the contributory pillar, enhancing the Universal Guaranteed Pension and establishing benefits and
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