Markel underwriters emphasise positive outlook for life science sector, while tighter laws are spearheading the need for environmental liability cover in Latin America.
As Latin America continues to modernise its life sciences and environmental frameworks, insurance will play a vital role in supporting sustainable, compliant growth across the region, two senior underwriters at Markel emphasise.
Latin America’s life sciences sector is undergoing rapid growth, with the pharmaceutical industry at the forefront.
Since 2021, the region’s pharma sector has experienced a compound annual growth rate of 10.1%, supported by an ageing population, improved healthcare infrastructure, and a push for advanced healthcare solutions.
“Latin America is increasingly becoming a hub for clinical trials, thanks to its diverse population and strides in healthcare investment and regulatory improvements,” says Robert Hannaford, senior underwriter for life science at Markel.
“We’re seeing local production expand, alongside advancements in medical technology that are helping broaden treatment options,” he says.
Regulatory frameworks across Latin America are progressively aligning with global standards, particularly Good Clinical Practice (GCP) and International Council for Harmonisation (ICH) guidelines.
This alignment is streamlining approval processes for new pharmaceuticals and medical devices, enhancing both domestic and international market opportunities, according to Hannaford.
Despite the region facing challenges amid a complex geopolitical environment, global demand for pharmaceutical products remains robust. As Latin American life science companies begin to scale internationally, Hannaford notes the growing importance of risk mitigation strategies.
“When these companies expand beyond their domestic markets, their liabilities change significantly,” he explains. “Without adequate insurance, a single incident involving a product could result in substantial legal or medical costs.”
With rising litigation and settlement costs globally, the need for specialist life science insurance providers is more pressing than ever. “Insurers with deep expertise in the sector can provide tailored coverage to protect companies against international exposures,” Hannaford adds.
Tightening laws fuelling EL demand
As Latin America implements stricter environmental regulations, businesses across the region are facing increasing compliance requirements—and potential liabilities.
Olivia Hogan, senior underwriter for international casualty at Markel, underscores the growing importance of environmental liability insurance in this changing landscape.
“Stricter environmental laws are having a direct financial impact on companies,” Hogan explains. “These laws not only demand compliance but also encourage insurers to innovate in how they assess and underwrite environmental risk.”
Many countries in Latin America adhere to the ‘polluter pays’ principle, notes Hogan, holding businesses financially responsible for damage caused to the environment. Brazil, known for its ecological biodiversity, is a leader in embedding this principle into its legislation.
In high-risk industries such as mining and oil and gas, some governments are mandating environmental liability insurance to ensure financial coverage for potential damage.
“Mexico, for example, requires transporters of hazardous materials to carry insurance that covers spill clean-ups and contamination remediation. Policies must align with government standards, or companies face fines and legal penalties,” Hogan says.
Environmental liability insurance can offer comprehensive coverage—including financial protection against statutory liability, first-party onsite clean-up costs, third-party property damage, and bodily injury.
“With regulatory demands tightening globally, companies need adaptable insurance solutions. Having a partner that understands evolving legislation and can provide robust, forward-thinking coverage is critical for long-term resilience,” Hogan adds.
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