Of the 18 countries analyzed in the most recent report published by FUNDACIÓN MAPFRE, The Latin American insurance market, saw a 14.1 percent increase in premium volume with respect to the previous year, reaching a total of €104.221 million [$141.32 million].
The report notes that the “dynamism and economic growth of Latin America’s major markets resulted in significant development of the insurance sector in the region in 2011. The development of the economies and strong internal demand in these countries confirm the potential for development of the insurance business in the region.
“Brazil continues to be the region’s largest market with a share of 33 percent, followed by Mexico, which represents 14 percent of the total insurance activity in the region, Venezuela and Puerto Rico (12 percent each), and Argentina (11 percent). The countries that experienced the largest increase in premium volumes were Paraguay (33.4 percent), Argentina (30.4 percent) and Guatemala (21.4 percent).”
The report also foresees “one more year of potential for growth in Latin American insurance markets. Puerto Rico continues to record the highest per capital premium in the region at €2,117 [$2,870] per inhabitant and stood out again in 2011 with regard to the insurance industry’s penetration in the economy – defined as percentage of premiums relative to gross domestic product (GDP) – at 17.3 percent.
“The figures for the remaining countries – e.g., Chile (€423 [$573]) per person and 4.1 percent), Brazil (€310 [$420] per person and 3.4 percent) or Venezuela (€262 [$355] and 3.4 percent) – are well below the figures for the European market (€1,349 [$1829] per person and 7.1 percent) and the U.S. (€2,728 [$3699] per person and 7.9 percent) economies.”
The report also breaks down the growth in the region by segments and business lines. It shows that ”60 percent of the premiums earned in 2011 in these markets were for the Non-Life segment (€62,547 million [$84.71 million]). This segment grew by 14.2 percent, especially influenced by increases in employment levels and in the sale of goods and automobiles, among other factors.”
In particular the report stresses the “evolution of the Personal Accident, Other Damages and Credit and Surety business lines. The Life segment, in turn, grew by 13.9 percent in 2011 to €41,674 million [$56.51 million].”
The report further notes that ”Latin American insurance companies improved their net results by 4.5 percent over the previous year, with significant growth in Argentina (69 percent) and Peru (46.5 percent). There were also excellent results in smaller markets, such as Guatemala, Paraguay and the Dominican Republic.”
It also highlights the major business movements that took place in the first half of the year, including the agreement of intent between Zurich and the Santander Group for a strategic alliance in the distribution of insurance, and the most important legislative changes that have occurred in the region.
The research, which will be also published in English, is available at FUNDACIÓN MAPFRE’s website, in the section corresponding to the Institute of Insurance Sciences – Studies Centre (Instituto de Ciencias del Seguro – Centro de Estudios) at http://www.fundacionmapfre.com. The report, which has been prepared on the basis of publications of insurance supervisory bodies and associations of local insurers, unifies criteria with the aim of facilitating comparisons among countries.
Source: FUNDACIÓN MAPFRE