2012-09-07 05:41:10 - Fast Market Research recommends "Brazil Insurance Report Q4 2012" from Business Monitor International, now available
Key Insights And Key Risks
The Brazil Insurance Report considers the prospects for life and non-life insurers in the country. As of mid-2012, the latest data from Brazil's leading insurance companies, in relation to calendar 2011 and Q112, confirms our view that the country is home to one of the world's most dynamic and rapidly growing insurance sectors. Overall premiums are growing at double-digit rates because: a) the openness of the market to entry by major multinationals, b) the growth in the numbers of households that can afford to buy insurance (and/or to save for the long-term) and c) the continuing downwards trend in inflation, interest rates and risk premiums attached to investment,.
Full Report Details at
To a greater
extent than their counterparts in other large emerging markets, the Brazilian majors are ready to undertake (very) large scale corporate deals. Bank distribution accounts for about 40% of all insurance sales in the country and, as such, is often a key to success: this explains the strategic partnerships between Zurich and Santander and between MAPFRE and Banco do Brasil, as well as the long-standing commercial links between Porto Seguro and Itau Unibanco. The banks have the imagination to recognise the opportunities that are available from 'open architecture'- the distribution of products that are sourced from unrelated suppliers. However, we also stress the various players are taking active and positive steps to develop their own brands, to invest in platforms and systems, to improve underwriting and profitability and to introduce new products.
The extremely upbeat reports that were published over the course of H112 confirm our view that prospects for the life segment are more exciting than those for the non-life segment. The recent results published by the leading Brazilian insurance companies (mainly in November last year) point to rises in life premiums (conventional life insurance, pension plans, VGBL and PGBL products, as well as Capitalizacao savings bonds) of around 20% or more relative to the corresponding periods of 2010. The details of the results point to strong (ie in excess of 30%) returns on capital and improvements to margins thanks to discipline in pricing of risks and claims management. Over the medium-term, the only constraint on growth is the ability of Brazilian insurers to raise new capital to support this business: the insurance sector will remain a major beneficiary of financial stability.
The main challenge for Brazil's non-life insurers remains the competitive pressures in auto-related lines - a problem in many of the markets monitored by BMI. Prices are not rising as fast as claims and other expenses. However, the prospects for growth in all other lines remain excellent. The expansion of health insurance, for instance, is being driven by larger numbers of customers, rising prices and the introduction of new products. Micro-insurance and lines which have obvious relevance to Brazil, such as agricultural insurance, are evolving rapidly from small bases. Unsurprisingly, a number of multinationals have indicated an interest in opening or expanding their businesses in Brazil.
Over the last quarter, BMI has made the following changes:
* The analysis incorporates BMI's latest forecasts for Brazil's economy, including details in relation to vehicle sales and trends in the healthcare sector.
* The analysis incorporates a considerable amount of commentary made available by the regulator and leading insurers in relation to conditions in Q112.
Partial Table of Contents:
- Table: Total Premiums, 2008-2016
- Key Insights And Key Risks
- Brazil Insurance Industry SWOT
- Brazil Political SWOT
- Brazil Economic SWOT
- Brazil Business Environment SWOT
- Latin America Life Sector Overview
- Table: Latin America Life Premiums, 2009-2016 (US$mn)
- Brazil Life Sector Update
- Table: Life Insurance Premiums Breakdown, 2009-2010 (BRLmn)
- Life Industry Forecast Scenario
- Table: Life Premiums 2008-2016
- Growth Drivers And Risk Management Projections
- Table: Insurance Key Drivers, Demographics, 2009-2016
- Latin America Non-Life Sector Overview
- Table: Latin America Non-Life Premiums, 2009-2016 (US$mn)
- Brazil Non-Life Sector Update
- Non-Life Industry Forecast Scenario
- Table: Non-Life Premiums, 2008-2016
- Growth Drivers And Risk Management Projections
- Macroeconomic Outlook
- Political Stability Outlook
- Table: Latin America Security Ratings
- Table: Insurance Key Drivers, Disability-Adjusted Life Years, 2009-2016
Insurance Risk/Reward Ratings
- Table: Brazil's Insurance Risk/Reward Ratings
- Table: Latin America Insurance Risk/Reward Ratings
- Latin America Competitive Landscape
- Major Players In Brazil's Insurance Industry
- Table: Insurance Companies By Gross Written Premiums, January-July 2010
- Bradesco Seguros
- Grupo Segurador Banco do Brasil e MAPFRE
- Caixa Seguros
- Itau Seguros
- Porto Seguro
- QBE Insurance Group
- Zurich Santander Insurance America
- Table: Population By Age Group, 1990-2020 ('000)
- Table: Population By Age Group, 1990-2020 (% of total)
- Table: Key Population Ratios, 1990-2020
- Table: Rural/Urban Population Split, 1990-2020
- Insurance Risk/Reward Ratings
- Table: Insurance Business Environment Indicators And Rationale
- Table: Weighting Of Indicators
- Brazil Demographic Outlook
- Table: Brazil's Population By Age Group, 1990-2020 ('000)
Full Table of Contents is available at:
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