Life and Non-life Insurance Market in Brazil - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The life and non-life insurance market in Brazil is estimated at USD 52 billion during the current year and is poised to grow at a CAGR of greater than 6% during the forecast period.

The unusual coronavirus is having a noticeable influence on a number of industries, including tourism, hospitality, aviation, and the car industry. The insurance industry is also feeling concerned as a result of the rising number of COVID-19-positive cases. Insurers have seen company loss firsthand as a result of repeated lockdowns and societal conventions that distance people from one another.

The very bureaucratic regulatory system that is currently in place is evolving toward being more liberal and innovative with less government intrusion. It still influences the IRB, the biggest locally registered reinsurer permitted to do business in Brazil. There are 313 registered firms and the value of premia at BRL is 226.5 billion. In 2021, Brazil was the country in Latin America with the highest premium volume in the non-life insurance industry. The insurance sector plays an important role in the Brazilian economy and society, as it contributes significantly to the development of infrastructure, the creation of jobs and income, and the accumulation of savings.

The Brazilian insurance market is shaped by influential trends and forces, and the macroeconomic picture is smothering growth through volatility in interest and exchange rates, as well as inflation and high unemployment. On the regulatory front, public pension reforms, the looming implementation of IFRS 17, and risk-based capital requirements for health insurance are placing new demands on the industry.

Brazil Life & Non-Life Insurance Market Trends

Low Penetration of Life and Non-Life Insurance Turns Out to be an Opportunity

The life and non-life insurance market penetration is low in the country. However, there has been slow growth since 2008 due to the development of life insurance policies. Low penetration of life and non-life insurance in the country is an advantage, as it helps new entrants to grab the opportunity and acquire market share by providing better services compared to other companies and utilizing the competitive advantage. To meet customer demand, build customer loyalty, and take advantage of the opportunities offered by digital technology, insurance companies are stepping up their efforts in product innovation, largely in the non-life sector. To tackle the rise of connected devices, insurers are investing in this new niche and launching connected insurance solutions in three key areas, namely motor, home, and health.

Smart Phones Helps Insurers to Gather Evidence

More than 70% of the population in Latin America now has access to a smartphone that connects them to the Internet and allows them to gather accurate, real-time data on incidents that can help insurers make claims faster. Most insurers are dealing with inefficient and siloed legacy systems along with the need to adopt digital technologies, particularly in data analytics and robotic process automation (RPA). Emerging market segments, such as small and medium-sized enterprises (SMEs) and class C, D, and E corporations, must also be focused as potential sources of growth. More customers are adopting digital channels, and as in other nations, they expect more than ever from insurers, as they do from other types of businesses. Product portfolios are also evolving, with combined products and new life and pension products taking on a higher profile. Pay-per-use products have also been approved. There is continuing evolution on the distribution front as well, thanks to the growing professionalization of brokers, the ongoing rise of direct and digital channels, growing significance of bancassurance and partnerships, and focus on increasing sales via social media.

Brazil Life & Non-Life Insurance Market Competitor Analysis

The report covers the major players operating in the life and non-life insurance market in Brazil. The market is fragmented, and it is expected to grow in the forecast period due to low penetration in the insurance industry and other few factors. Companies including, Bradesco Seguros SA, MAPFRE Vida SA, Porto Seguro Companhia de Seguros Gerais, Tókio Marine Seguradora SA, and Alianca Do Brasil Seguro SA, among others have been profiled in the report.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support