The insurance market in Latin America demonstrated notable resilience in 2022, experiencing impressive growth of 15.9 %, reaching a total of $173,674 million

This economic phenomenon did not go unnoticed and was analyzed in detail by Mapfre, a leader in the business in the region.

Growth drivers

• Booming Economies: The surprising performance of Latin American economies exceeded expectations, which significantly influenced the growth of the insurance market.
• Favorable interest rates: The more favorable interest rate environment facilitated the marketing of life savings and annuity products, which contributed to the success of the insurance market.
• Life insurance: 42.3 % of total premiums in 2022 experienced an increase of 15.3 % in dollars. This positive phenomenon is reflected in the growth of the Non-Life segment, which improved by 16.4 %.

Life Segment Breakdown

Individual and group life insurance, representing 35.8 % of the region’s total premiums, experienced a significant increase of 13.1 %.

Concerning pension and social security insurance, this particular sector experienced spectacular growth, with an increase of 29.2 %.

The insurance market in Latin America presents a series of promising trends. The continued demand for Life and Non-Life insurance, combined with a favorable economic environment, suggests a bright future for the insurance industry in the region.

With information from Doble Llave

(Referential image source: Unsplash, in collaboration with Getty Images)

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The Latin American insurance market grew 11.5 % in 2021, to 149,794 million dollars (about 153,280 million euros), and recovered from the strong contraction it experienced in 2020 (-11.9 %). Although it has not yet recovered the level of premiums prior to the outbreak of the pandemic, according to the report ‘The Latin American insurance market in 2021’, prepared by Mapfre Economics and edited by Mapfre Foundation.

The growth of this market is due to the economic recovery and the interest rate environment in the last months of the year, which favors life insurance. In addition, the economic effect on the volume of insurance business due to the depreciation of currencies against the dollar was moderate and even some markets, such as Mexico or Chile, were favored by an appreciation of the average exchange rate of their respective currencies, Mapfre explained.

Premiums in the life insurance segment in Latin America, which represent 42.5 % of total premiums in 2021, experienced an increase of 11.2 % measured in dollars, while premiums in the non-life insurance segment grew 11.7 %.

The life insurance segment only partially recovered from the sharp drop in the previous year, which was largely due to the behavior of Brazil and Chile, which failed to reach the level of premiums prior to the health crisis. The rest of the markets, except for Venezuela, exceeded the pre-pandemic level.

Life insurance premiums increased

Within the life business, the growth of individual and group life insurance premiums stood out, representing 36.9 % of total premiums in the region, with growth of 8.7 % compared to the previous year. For its part, previsional and pension insurance experienced significant growth of 30 %, although its weight is relatively small in the life business of the region, representing 5.8 % of total premiums in 2021.

On the other hand, the non-life insurance segment of the Latin American market exceeded the level of premiums prior to the crisis caused by the pandemic. According to the report, this sector had already been anticipating the situation of economic stagnation in which the Latin American economy found itself and has once again been compensated by the health business, with growth in premiums in 2021 of 11 % (9.2 % in 2020).

In terms of structure, the insurance markets in Latin America that presented the highest levels of concentration were Uruguay, Costa Rica and Nicaragua, with a Herfindahl index above the threshold that indicates a high industrial concentration.

On the contrary, Peru, Venezuela, Honduras, Puerto Rico, Panama, the Dominican Republic, El Salvador and Guatemala presented values ​​with a moderate level of concentration and the rest of the Latin American insurance markets presented indices below the threshold that anticipates moderate levels of concentration.

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Source: dpa

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The insurance market in Latin America experienced a drop of 11.9 % in premiums in 2020, to 134,361 million dollars, of which 57 % were registered in Non-Life insurance compared to the remaining 43 % in Life insurance, according to a report presented by Mapfre Economics and edited by Mapfre Foundation.

The contraction in the sector was mainly motivated by the evolution of the Life business, as well as by the sharp decline in this business line in Brazil, Mexico, Chile and Colombia, in addition to the impact of the depreciation of their local currencies.

As a consequence, the Latin American insurance market share in the world total fell again in the last year, according to the study, to stand at 2.1 %.

The premiums of the insurance segment experienced a decline of 18.7 % measured in dollars, compared to the growth of 5.1 % registered in 2019, while the premiums of Non-Life insurance had a fall of 6.1 %, compared to the 1.1 % contraction observed in 2019.

These setbacks affected practically all the major markets in the Latin American region, the Chilean market being the one that fell the most (-15.3 %), followed by Ecuador (-5.3 %), Mexico (-3.1 % ), Peru (-2.4 %) and Brazil (-2 %).

However, the region also experienced some positive exceptions, such as the growth of Puerto Rico (+13.7 %) driven by the good performance of health insurance.

The aggregate net result of the insurance market in the region stood at 9,316 million dollars in 2020, which represents a decrease of 30.1 % compared to the previous year.

Source: dpa

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