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Jamaica Insurance Report Q2 2016

Jamaica Insurance Report Q2 2016

BMI View: Jamaica's insurance sector will increase at a steady clip in the short and medium term, giventhe low but growing penetration rates. Jamaica's life insurance sector is dominated by Sagicor Life andGuardian, capturing 85% of sector premiums between them. This two-horse race will remain over the nextfive years, with potential challengers lacking any significant differentiation. The non-life sector by contrastis well-diversified, encouraging competition. No company captures above 20% of sector premiums in nonlifebusiness.

Currency weakness will have less of an impact on premium growth in 2016 compared to 2015, with lifepremiumsset to increase from 3.1% in 2015 to 6.2% this year. Growth will reach USD370mn in 2016 andhereafter, increase above 7% per annum to reach USD550bn in 2020. Even with this expected development,penetration ranging from 2.4-2.6%% of GDP is indicative of the relative immaturity of the island's lifesector. We expect Sagicor and Guardian to remain the dominant players in the market for some years tocome.

Jamaica's non-life sector, dominated by motor and property cover, is generally underdeveloped with grosspremiums at around USD100 per capita. Dollar-terms growth will return from 2016 as the currencystabilises, in reality, expansion of around 5-7% is the reality in local currency terms. Competition is fargreater in the non-life sector than in life business and this risks driving down prices and cutting profitmargins for most players, particularly across motor and property business.


BMI Industry View
Table: Headline Insurance Forecasts (Jamaica 2013-2020)
SWOT
Industry Forecast
Life Premiums Forecast
Table: Life Premiums (Jamaica 2013-2020)
Table: Life Insurance Claims (Jamaica 2008-2015)
Non-Life Premiums Forecast
Table: Non-Life Premiums (Jamaica 2013-2020)
Table: Non-Life Insurance Claims (Jamaica 2009-2015)
Non-Life Sub-Sector Forecast
Table: Non-Life Insurance Premiums by Product Line (Jamaica 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
The Product Offering
The Competitive Landscape
Table: JAMAICA LIFE MARKET SHARE (%) 2007-2012
Non-Life Market Overview
The Product Offering
The Competitive Landscape
Table: DOMINICAN REPUBLIC NON-LIFE MARKET SHARE (%) 2009-2014
Company Profile
Guardian Group
Methodology
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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