From The Report: Mexico 2017
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Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the rising cost burden faced by consumers. A bigger growth opportunity lies in increasing the penetration rate – currently at half the level of leading Latin American countries like Chile – while the eventual ageing of the still relatively young population bodes well for demand for the whole range of products, particularly life insurance and pensions. After a strong performance in 2016, prospects for 2017 look good but are clouded by the uncertain macroeconomic environment. Factors may vary, but what is agreed is that concrete plans are needed in order to boost the overall penetration rate in the country. This chapter contains an interview with Mario Vela Berrondo, President, Mexican Association of Insurance Companies.