Environmental Laws Latin America

Latin America Market Overview

The total volume of premiums in Latin America and the Caribbean was $ 105 billion in 2008, equivalent to 2.5% of the business of insurance in the world. Theconcentrated damage insurance almost 60% of premiums in Latin America, while the remaining 40% corresponded to life insurance. Premiums are concentrated in six major markets, Brazil, Mexico, Argentina, Chile,Venezuela and Colombia, which together account for 91% of premium volume in the region. The insurance industry has had a significant growth in recent years. However, the growth was not enough compareto the demanded levels of industrialized countries. On average, in Latin America the per capita spending on insurance is around USD 176 in 2008, well below average World USD 618. As well, theinsurance penetration (2.5% of GDP in the region) was well below the world average of 6.9%.

In 2008, the estimated volume of insurance premiums for personal lines was $ 88 billion in Latin America. Ofthis, the damage insurance premiums accounted for USD 46.2 billion, while the other corresponded USD 41.5 billion of life insurance. In the segment of damage has dominated the auto insurance business andhealth, in life, insurance products related to pensions. 42% of the premium income of the latter region occurred in Brazil, and Mexico contributed 19%.

The growth in personal lines in 2008 was madepossible by a favorable economic environment. Insurance companies contributed to this positive development by redesigning their products and the use of distribution channels to access a broadercustomer base. Furthermore, successful implementation of bancassurance and alternative distribution channels has been facilitated due to the regulatory framework.

If this dynamic is steady for next tenyears, personal lines grow at an average annual rate of 7% in real terms above the GDP growth rate projected at 3.3%. This will result in premium volume personal lines of USD 175 billion in 2019....