Chile Insurance Report Q2 2016
BMI View: Despite the global difficulties facing Chile's economy, the country's insurance market continuesto be one of the most dynamic in Latin America. High income levels and life expectancies, combined with awell-structured pensions framework have helped support the development of the life insurance sector, whichcontinues to grow through product development and new innovations. Life insurance premiums are growingrapidly from a low base. The life and non-life markets are mature and contain several leading multinationalfirms as well as indigenous providers, meaning opportunities for new entrants will be more limited thanthey are in other markets in the region. Nevertheless, the growth of these sectors may open up opportunitiesfor partnerships and mergers with smaller local players.
Key Updates and Forecasts
In January 2016, US insurer Liberty Mutual Insurance announced the completion of the acquisition ofChile's Penta Security, the fourth largest non-life insurance provider in the country. This sees Libertybecome the largest provider of property and casualty insurance in Chile.
We forecast Chile's life insurance market to grow 9.0% y-o-y in USD over 2015-2020, to USD9.9bn.
The non-life market will grow slightly faster, with premiums growing by 10.3% y-o-y, to USD5.7bn.
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