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Nicaragua Insurance Report Q2 2016

Nicaragua Insurance Report Q2 2016

BMI View: Nicaragua's is the smallest of the insurance industries in the Central American region, withtotal gross premiums in 2016 set to reach just USD197mn, equating to insurance density of just USD32 percapita. Local currency growth has been high, but returns for international companies have been limited bycórdoba weakness which is set to continue. Demand for health insurance will be a key driver in non-lifebusiness, particularly as low-cost options are developed for low-income individuals and households. A lackof competition will, however, curtail innovation and inflate prices across much of the market, both trends tothe detriment of consumers.

Key Updates And Forecasts

The release of full-year 2015 data from the insurance superintendent shows a slowdown across theindustry, with life insurance slipping to 10.7% growth in NIO terms, a dollar rate of expansion of just5.4%, one of the lowest in years. We expect slower growth to continue over the forecast period to 2020.

Non-life insurance fared slightly better, outperforming expectations. In 2016, growth will continue toslow, reaching just 8.9% in córdoba terms. Health insurance was the key outperformer with annualgrowth of 19%, and expansion will remain in excess of 10%.

Currency weakness is set to persist, coupled with a cooling of the relationship between Nicaragua andVenezuela; this is negative to the economic outlook for the country over the coming years. The córdobais set to depreciate to 29.3 to the USD by end-2016, from 27.9 in December 2015.

BMI Industry View
Table: Headline Insurance Forecasts (Nicaragua 2013-2020)
Industry Forecast
Nicaragua Life Premiums Forecast
Table: Life Premiums (Nicaragua 2013-2020)
Table: Life Insurance Claims (Nicaragua 2008-2015)
Nicaragua Non-Life Premiums Forecast
Table: Non-Life Premiums (Nicaragua 2013-2020)
Table: Non-Life Insurance Claims (Nicaragua 2009-2015)
Nicaragua Non-Life Sub-Sector Forecast
Table: Non-Life Insurance Premiums by Product Line (Nicaragua 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: Nicaragua Life Market Share, 2008-2015 (%)
Table: Nicaragua Life Market Share, 2008-2015 (USDmn)
Non-Life Market Overview
The Product Offering
The Competitive Landscape
Table: Non-Life Market Share (%) 2008-2015
Table: Non-Life Market Share (USDmn) 2008-2015
Company Profile
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: Indicators
Table: Weighting of Indicators

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