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Dominican Republic Insurance Report Q2 2016

Dominican Republic Insurance Report Q2 2016

BMI View: The Dominican Republic's insurance market will continue to be one of the least developed inthe Caribbean, with per capita premiums of just USD70.1 in the non-life sector and a paltry USD8.8 in thelife market. Currency weakness will also continue to plague the dollar terms returns for many operators.

Health insurance, an underdeveloped line of business, is likely to outperform our forecasts given the recentoutbreak of the Zika virus.

Key Updates And Forecasts

We note upside risk to health insurance premium growth due to the spread of the Zika virus in theCaribbean, a mosquito-transmitted infection believed to cause birth defects. Although the virus has yet tospread to Dominican Republic, the WHO expects the virus to spread to every nation in the Americas,except Canada and Chile, by end-2016. The US Centers for Disease Control and Prevention (CDC) hasissued a travel alert encouraging women who are or could become pregnant to 'consider postponing travelto any area where Zika virus transmission is ongoing'. While we maintain our core view that visitorarrivals will continue to rise in 2016, we caution that concerns over the virus will cap arrivals growth.

The Dominican Republic life insurance market is currently the least developed in the Caribbean, and wedo not expect a significant turnaround in the medium term. Life insurance products are not attractive toDominicans, partly because their value has yet to be sold, but also because of low levels of disposableincome.


BMI Industry View
Table: Headline Insurance Forecasts (Dominican Republic 2013-2020)
SWOT
Insurance
Industry Forecast
Life Premiums Forecast
Table: Life Premiums (Dominican Republic 2013-2020)
Table: Life Insurance Claims (Dominican Republic 2008-2013)
Non-Life Premiums Forecast
Table: Non-Life Premiums (Dominican Republic 2013-2020)
Table: Non-Life Insurance Claims (Dominican Republic 2009-2013)
Non-Life Sub-Sector Forecast
Table: Non-Life Insurance Premiums By Product Line (Dominican Republic 2013-2020)
Industry Risk Reward Ratings
Latin America Insurance Risk/Reward Index
Table: Latin America and the Caribbean Insurance Risk/Reward Index - Q216
Market Overview
Life Market Overview
Table: Non-Life Insurance Market (USDmn) 2009-2014
Non-Life Market Overview
Table: DOMINICAN REPUBLIC NON-LIFE MARKET SHARE (%) 2009-2014
Company Profile
Seguros Universal
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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