|
|
 |
|
Viewing report
|
|
|
|
Brazil Insurance Report Q1 2012
Business Monitor International, Nov 2011, Pages: 83
Business Monitor International's Brazil Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Brazil's insurance industry.
- For the world’s insurers, Brazil is bonanza territory. It is a large insurance market in absolute terms; the results from the various insurance companies for Q111 and H111 confirm that growth remains very rapid; the constraints that exist in Russia (eg: the absence of a life segment), India and China (eg: restraints on foreign players) are absent.
- Brazil is also remains rich territory for investment banks that advise insurance companies in relation to very large deals. The strategic partnerships between Mapfre and Banco do Brasil and between Zurich and Santander (not to mention the longstanding partnership between Porto Seguro and Itaú Unibanco) mean bank distribution is key to success. Sometimes that means buying it. Conversely, the Brazilian banks are imaginative enough to see that they can be better served by partnering with a foreign insurance giant rather than trying to develop their own insurance operations. The potential for bancassurance is large.
- The key drivers of growth remain the expansion of the economy, the general improvement in perceptions of risk, the expansion of the number of households which need and can afford insurance, and rising corporate profits.
Brazil is possibly the only major insurance market in the world where the local banks, which are enormous by any metric, and global multinational insurers appear to be daunted by the opportunities. Recent deal making recognises the fact that about 40% of all insurance products are sold through banks and this amount may increase. The banks have trusted brands and huge branch networks. Global multinational insurers have access to capital and experience in product development. In both segments, BMI expect more bancassurance partnerships, product innovation and growth.
In the non-life segment, it appears that the growth will arise in the short-term from the spectacular expansion of health insurance. ‘Elementary’ lines such as voluntary motor insurance (CASCO as it would be called in continental Europe) are already characterised by fairly intense competition: premium growth is being driven mainly by the increase in the number of vehicles on Brazil’s roads. Compulsory motorists’ third-party liability (CMTPL) insurance is already a commodity that is sold through a consortium owned by the major companies that deal in that line. Over time, BMI would expect agricultural insurance and other commercial lines to grow strongly as well. Nevertheless, stability of non-life penetration and its already high level suggest that the absolute growth of the non-life segment will be driven by further GDP growth.
Life insurance is becoming a mainstream channel for organised savings and is being used by an increasing number of people. The demand exists and the suppliers have the branding, financial strength, distribution channels and necessary partnerships. There are fewer competing channels for savings in Brazil compared to other countries in Latin America (where private pensions are well established) or developed countries. Over time, growth will come from the expansion of the general pool of household savings. It will also come from innovative product development as customers look for alternatives to the long-established VGBL/PGBL and capitalização products.
The Brazilian insurance market is still characterised by the overwhelming predominance of traditional insurance products and premiums, with plenty of room for product and line diversification.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
