BMI View: BMI maintains an excellent five year growth outlook for the Mexican life and non-life insurancesectors. The market is set to benefit tremendously and grow from a steady baseline out to 2021. Multiplefactors will support high rates of life and non-life insurance including rising incomes, growingdiscretionary spending powers and a desire for savings and investment in the country. The Mexican life andnon-life insurance markets are becoming increasingly more attractive investment destinations for (foreign)providers. With the recently introduced Solvency II model, the market has become better regulated - directlybenefiting the customer. With the improving customer awareness of the benefits of insurance solutions andthe improving disposable income levels, the Mexican insurance market should see increased activity fromforeign multinationals. Over the long term, we also foresee some degree of market consolidation as a resultof the greater capital requirements imposed by the new regulations.
Latest Updates And Industry Developments
In 2017, life insurers are expected to write MXN180.7bn (up 6.6% from 2016) or USD9.0bn. Over the2017-2021 period, life premiums are set to grow at an average annual rate of 5.8% - reachingMXN224.3bn (USD13.2bn).