Travel across South America is recovering steadily post-pandemic, showing one of the quicker rebounds globally, and the region’s mix of tropical adventure, affordable private hospitals, and diverse infrastructure has created a new wave of opportunity – and exposure – for insurers.

“Tourism across South America has not only returned to pre-pandemic levels but, in some destinations, has surpassed them,” said Andrés Sánchez Campos, Assistant Vice President of Operations for LatAm International Business at Global Excel Management. “According to the UNWTO, the region welcomed over 40 million international visitors in 2023 – double-digit growth compared to the previous year – and that pace has held steady ever since.”

More tourists mean more medical cases, and the nature of those cases is shifting. “It’s not just about emergency evacuations any more,” Sánchez Campos continued. “We’re seeing digital nomads, retirees, and medical tourists travelling for affordable, high-quality procedures. There’s a clear pattern of longer stays, older travellers, and higher-value claims.”

Guillaume Corpart, Founder and CEO of Global Health Intelligence, agreed that elective care was shaping new patterns of demand. “There are several intersecting forces behind the rising demand for both emergency and elective healthcare services among international tourists in Latin America,” he explained. “Patients from high-cost markets like the US and Canada travel to Latin America because elective procedures can cost a fraction of home prices while maintaining good clinical quality. That price gap – often 60% cheaper – is the core engine of elective demand.”

He said the region’s hospitals are deliberately capitalising on this, emphasising that infrastructure and professionalism have improved dramatically. “Private clinics are marketing full ‘surgery plus vacation’ packages, complete with hotel recovery stays and concierge-style patient care,” he told IHH.

But Gerardo Martinez, Medical Director and CEO of Assistance Services of the Americas (ASA), warned that growth in elective care has run parallel to an even faster rise in emergencies. “The increase in adventure tourism across South America – diving, trekking, high-altitude expeditions – has led to a surge in serious incidents,” he said. “Altitude sickness in Cusco, diving accidents in northern Brazil, jungle infections in the Amazon – all require high-level care in areas that were never designed for international emergency medicine.”

He added: “Those medical events often require air evacuation to reach a tertiary facility in a capital city, and the logistics can be extremely costly.”

Quality and cost: a continent of extremes

Healthcare in South America offers some of the best and worst conditions an insurer can encounter. High-end private hospitals in São Paulo or Bogotá can rival European standards, but, outside the major cities, options diminish quickly.

“Brazil combines universal coverage with a strong private sector,” said Sánchez Campos. “Around 25% are enrolled in private plans regulated by ANS (Agência Nacional de Saúde Suplementar), creating a robust ecosystem in São Paulo and Rio de Janeiro, where tourists typically access large private hospitals. Prices are mid-range compared to other regional markets.”

He pointed to Colombia as an emerging model for quality and cost balance. “Private hospitals in Medellín and Bogotá are technologically advanced and globally competitive, yet prices remain relatively affordable,” he said. “Elective surgery can be a third of what it would cost in the US, and hospitals are actively seeking international accreditation to attract insured patients.”

Martinez agreed. “Facilities in Colombia, Argentina, Brazil, and Chile are superior in all aspects of care to those in Bolivia, Guyana, or Venezuela,” he said. “The quality gap is wide. A tourist treated in Santiago de Chile or Buenos Aires can expect seamless care, while someone injured in Patagonia or the Atacama Desert may need urgent air evacuation to reach that same standard.”

Sánchez Campos noted that inflation and currency volatility amplified this unevenness. “Argentina’s inflation and fiscal adjustment policies have pushed more locals back into public hospitals, overloading the system,” he said. “For tourists, private hospitals remain the only option, but because of inflation and currency instability, those hospitals frequently require deposits or full prepayment before treatment.”

Meanwhile, Chile’s private sector is under financial strain, following years of increasing healthcare costs compounded by a supreme court ruling on the premiums charged by private health insurers (institutos de salud previsional or ISAPREs). “Chile maintains some of the highest medical standards in the region,” Sánchez Campos added, “but the ISAPRE crisis and health financing reforms have made private facilities more cautious about accepting foreign insurance. The clinical quality is superb – the challenge is administrative.”

Across the region, the Pan American Health Organization notes that healthcare spending averages around 8% of gross domestic product (GDP), but private-sector out-of-pocket costs are disproportionately high. Industry experts have warned that inequality in access and affordability remains the defining feature of Latin American healthcare – a reality insurers must navigate daily.

Public, private, and the insurer’s balancing act

For travellers, accessing that quality care depends on the ability – and willingness – of hospitals to work with international insurers.

“Across the region, tourists rely almost exclusively on private providers,” Sánchez Campos said. “Admission, however, usually depends on whether the hospital accepts an international insurer. Most facilities require a guarantee of payment or a deposit before treatment. Public systems rarely accept foreign insurance and often require residency or involve lengthy waiting times.”

Martinez described how his teams bridged that gap on the ground. “While public healthcare in South America is of a very high academic standard, it isn’t practical for insured foreign tourists,” he said. “Medical records are difficult to obtain, care is often transferred between multiple doctors, and the patient experience can be disorientating.”

He explained that local representation made all the difference. “If a hospital doesn’t recognise the insurer, they’ll ask the patient to pay upfront,” he said. “Having a Latin American assistance partner that can issue a guarantee of payment letter – in the local language, within minutes – avoids delays and potential refusals.”

Sánchez Campos added that network-building had become a core strategy for insurers. “We’re seeing more payers negotiate direct contracts with hospitals,” he said. “It allows them to lock in pricing, ensure 24/7 acceptance, and avoid the friction that occurs when facilities demand deposits. This trend is particularly strong for high-volume elective procedures like orthopaedics and cardiac care.”

In Latin America, private healthcare providers play a substantial role in delivering services across the region, and the private sector’s share of health provision and financing is significant compared with many Organisation for Economic Co-operation and Development (OECD) countries. According to research on health systems in low- and middle-income countries, private hospitals and clinics account for a large portion of total healthcare services in the region.

Inflation, instability, and invisible costs

Even with direct networks in place, financial risk remains volatile. “Price opacity, fragmented billing and inflation are our main pain points,” Sánchez Campos said. “Few hospitals offer bundled packages; most providers bill line by line, which complicates transparency and cost predictability. Exchange rate volatility further impacts claim settlement and refunds.”

The volatility isn’t just local, it’s regional. “Argentina’s inflation means hospitals can’t predict their own costs,” he explained, “while in Chile and Colombia, regulatory reforms create uncertainty around payment processes and recognition of insurers. It’s a constantly moving target.”

Martinez said this unpredictability shaped how assistance firms managed exposure. “Costs for private care in South America are expensive, but reasonable, unlike the costs found in private hospitals located in touristic destinations of Mexico and some Central American countries, particularly Costa Rica and Panama.” However, administrative burdens can delay  or complicate insurance claims. “Some hospitals only accept overseas billing if the insurer belongs to a local mutual health group. Otherwise, everything is cash-based.”

That means insurers without in-region partners often face slow reimbursement cycles or stranded patients. If there’s no partner on the ground, it’s not just a cost issue – it’s an operational risk, Martinez pointed out. For example, a three-hour delay in securing a guarantee of payment can easily turn into a life-threatening delay in care.

According to WTW’s 2026 Global Medical Trends report, healthcare cost inflation in Latin America is expected to rise to about 11.9% in 2026, up from around 10.5% in 2025. This reflects strong upward pressure on medical costs across the region.

Building resilience and readiness

Despite the headwinds, experts agree that insurers have the tools to control exposure – if they use them early.

“We can’t change the geography,” Martinez said, “but we can shorten the chain of decision-making. Having pre-arranged rates with hospitals and air ambulance operators in every major city saves hours and thousands of dollars when an emergency happens.”

Sánchez Campos echoed that sentiment. “Preparedness is everything,” he said. “We encourage insurers to pre-authorise elective procedures, verify credentials, and understand the true evacuation costs from remote areas before they become a claim.”

There’s optimism about the region’s healthcare evolution. Grand Review Research projects the Latin America healthcare insurance market to grow at a compound annual growth rate (CAGR) of about 5.9% until 2027, reflecting expanding private healthcare financing in the region. Meanwhile, IMARC Group expects Brazil’s medical tourism market to grow from approximately US$3.7 billion in 2025 to an estimated $16.3 billion by 2034, with a forecast CAGR of nearly 18%, driven by increasing international demand for high-quality and cost-competitive healthcare services.

The outlook points to a greater divide between capital cities and rural areas. But it also means more opportunities for insurers to work directly with high-quality providers. The more transparent and predictable the ecosystem becomes, the better for everyone involved.