Life insurance in Latin America: Key market research findings
- Brazil dominates the market geographically
- Better customer segmentation helps achieve improved profitability
- Key vendors – AXA, Bradesco Seguros, Itaú Unibanco Holding, Mapfre, and Zurich Insurance
Technavio’s market research analysts predict the life insurance market in Latin America to grow at a CAGR of around 6% between 2016 and 2020. The growth of this market is stimulated by a rise in life expectancy and the resultant increase in the demand for retirement policies. Growing middle-class populations, surge in global commercial and entrepreneurial operations, expansion of industrialization, growth in consumer awareness regarding insurance products, and rising disposable incomes across different regions are transforming the insurance industry globally. Brazil dominated the life insurance market in Latin America during 2015 by occupying more than 47% of the overall market share. A vast demographic change coupled with the entry of foreign insurance market players is expected to further fuel growth in the life insurance in the market in Brazil in the coming years.
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Life insurance companies in the market are trying to achieve improved profitability through better customer segmentation. Life insurance companies are now providing embedded services in protection products through innovative annuity options. Such products are premeditated to offer retired employees with optional medical care in addition to lodging facilities. For this approach to be successful, life insurance companies are required to establish a broad customer base and understand customers’ reaction to each product,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
Vendors in the market are targeting a broader spectrum of the audience through the use of multiple channels. Conditions such as sound economic environments, product innovations, improvement in insurance regulations, and multiple distribution channels are contributing majorly to the increase in premium amounts. Life insurance regulatory bodies and other policyholders are encouraging healthy competition as low inflation has cast a positive effect on premium growth. Product innovations are also expected to contribute to the growth in the life insurance market in Latin America during the forecast period.
The key vendors in the market include AXA, Bradesco Seguros, Itaú Unibanco Holding, Mapfre, and Zurich Insurance. Customers are always on the lookout for insurance policies with better pricing. This has induced insurance firms to venture into new markets to tap the growing demand from different customer bases and also provide advice on the best insurance and coverage policies. The growing complexity of the economy will result in an increase in the application for insurance against various risks, which will deepen the penetration of insurance products. This is likely to intensify the level of competition among life insurance companies in the already competitive market. The forecast period will also witness increased investments from major vendors to develop innovative products and also to improve their distribution and service strategies. Moreover, big insurance firms will also follow M&A techniques to retain their share of the market and also to increase their market share in developing countries.
A more detailed analysis is available in the Technavio report, Life insurance Market in Latin America 2016-2020.
We can customize reports by other regions and specific segments upon request.
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