Insurance
From The Report: Peru 2015
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With net insurance premium growth of 16% in 2013, the Peruvian insurance sector continues to outperform regional neighbours such as Mexico (11%) and Colombia (8%). Double-digit growth is expected to continue through 2015, propelled by small businesses and the modernisation of mature industries and infrastructure. However, gross premiums to GDP, which stood at 1.5% at the end of 2012 (half the regional average of 3%) demonstrate the weak penetration in Peruvian market. Following the passage of significant domestic regulatory reforms in 2012, Peru’s insurance industry now faces the challenge of modernising its practices in preparation for the Solvency II standards, while also coming up with novel ways to engage first-time customers.

The sector’s broader economic significance will persist, with insurance companies collectively constituting the second-largest institutional investor in Peru with approximately $9bn in assets under management.

Articles from this Chapter

Overview

Increasing public awareness could help boost penetration rates
OBG
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Latin America as a whole has seen average insurance premium growth in the double-digits since 2012, well above the rate recorded in most other regions and outpacing regional economic growth. Even against this backdrop, Peru’s performance stands out, with net insurance premium growth of 15% in 2013, compared to 8% and 11% in Colombia and Mexico, respectively. Gross premiums to GDP, however, which stood at 1.5% at the end of 2012, demonstrate the weak penetration of Peru’s market, at half the regional…

Analysis

Microinsurance still limited: Regulatory environment must make way for mass distribution
OBG
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Microinsurance remains a very small part of the insurance industry in Peru, accounting for PEN3.5m-4m ($1.25m-1.43m) in premiums per year, depending on differing definitions of what constitutes microinsurance. The Inter-American Development Bank (IDB) has described Peru’s microinsurance market as “still minute, despite an array of product offerings”, all the more surprising given a potential consumer base of 23m. Regulation Microinsurance legislation was first established in Peru in 2007,…