Mexico Insurance Report Q2 2016
BMI View: We have made some forecast adjustments this quarter to adjust for the peso currencyfluctuations against the US dollar. We hold a strong and positive outlook for the Mexican insuranceindustry as a whole for 2016 and over the course of our forecast period to 2020. We believe that both thelife and non-life segments will grow on par in 2016. Beyond that, the non-life sector will outpace growth inthe life sector. In 2016, we are expecting total Mexico insurance industry premiums of MXN379bn y-o-ygrowth of 6.7% (USD23.4bn, up 4.4% y-o-y). Out to 2020, we believe that premiums will reachMXN487.5bn (USD32.5bn). In the medium term, we envisage strong growth rates in both sectors beingprimarily driven by a strong economy, a robust manufacturing and services sector and growing householdincome and disposable discretionary spending powers.We have revised our outlook for the Mexican insurance sector in the Q2 2016 report update. We hold apositive outlook for the Mexican insurance industry as a whole for 2016 and beyond, over the course of ourforecast period out to 2020. We believe that the strongest growth in 2016 and over the forecast period willcome from the life insurance sector. The life insurance sector is set to grow by 4.4% in dollar terms in 2016and the non-life sector will grow by 4.4% this year. Premiums will reach USD10.4bn and USD12.9bnrespectively. Over the medium term, we forecast the growth rate to slow down slightly, but we stillanticipate strong single digit growth in both sectors, both primarily driven by a strong economy, a robustmanufacturing and services sector and growing household income and disposable discretionary spendingpowers.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook