By Jason Mitchell
INSURANCE SECTOR REPORT: Capital idea
Latin America’s insurers are becoming ever-more important players in the region’s capital markets, as their assets under management expand rapidly
For insurance companies operating in Latin America, the
opportunities are hard to miss.
The region has one of the world’s lowest
insurance rates: premiums in Latin America are the equivalent
of roughly 3% of GDP, compared to an average of 7% in the
developed world, according to Moody’s. Brazil, for
example, is the world’s sixth-biggest economy but
it ranks 33rd in terms of insurance penetration, according to
The catch-up potential is enormous—and the industry
is expanding fast. Between 2008 and 2012, insurance premiums
grew around 14% per year, in US dollar terms. That beat the 10%
annual expansion in Asia-Pacific and was clear above the 2%
worldwide average, according to Swiss Re Sigma.
Helga Jung, a member of the board at Swiss insurer Allianz,
says the industry is looking in earnest to global emerging
markets for growth. "The emerging markets will continue
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