More than 8.2% of the population in Latin America and the Caribbean had at least one microinsurance policy as of December 2016, with 52.1 million people insured corresponding to USD 420 million in Gross Written Premiums, estimates a new study on The Landscape of Microinsurance in Latin America and the Caribbean (LAC) 2017 – Preliminary briefing note, published by the MicroInsurance Network and Munich Re Foundation.
The preliminary findings of the study are being released today, as the 13th International Microinsurance Conference “Inclusive insurance for the mass market” opens in Lima, Peru. The event, which will run through to Thursday November 9th, will bring together over 400 experts from around the world to look at ways to accelerate the growth and economic viability of the microinsurance sector.
“The LAC region has shown substantial growth in microinsurance outreach. However, recent events such as the floods in Peru, as well as the earthquakes and hurricanes across the region, have demonstrated that there is still not enough protection for people in the low-income market,” said Dirk Reinhard, Vice Chairman of the Munich Re Foundation who co-published the study.
Regulators within the LAC region reported significant increases in premiums between 2013 and 2016 with a 1,799% premium increase reported for Brazil, 284% for Nicaragua, and 95% for Peru. In Mexico, the regulator reported that premiums have increased by 36% per year on average between 2007 and 2017.
At the same time, preliminary results indicate that commissions have been declining since 2014, with the average commission falling from 20% to 12% , and loss ratios have remained relatively low at an average of 46%, with 69% of products at loss ratios below 41%.
The LAC microinsurance landscape study is part of the World Map of Microinsurance, an initiative that maps global data on microinsurance dating back to 2006. Through this strategic programme, the Microinsurance Network, supported by the Munich Re Foundation and other partners, collect data needed to identify and monitor growth trends in the field of microinsurance.