Strategic Market Intelligence: Insurance Industry in Nicaragua - Key Trends and Opportunities to 2023
Nicaragua is a lower middle-income country, with a gross domestic product (GDP) of NIO375.4 billion (US$12.5 billion) in 2017. For over a decade, the Nicaraguan economy has been dependent on Venezuela’s financial support. This was available as a favorable term of trade and cheap crude oil, and helped fund the country’s social and welfare schemes, among others. However, this changed after Venezuela’s economy collapsed; financial support ended in 2017, and the Nicaraguan government curtailed social spending. Civil unrest ensued, resulting in economic instability.
As of 2018, Nicaragua’s total insurance industry GWP was NIO7.1 billion (US$226.5 million), and grew at a CAGR of 11.2% during 2014-2018. Property, motor and life accounted for the major share of the market. In general insurance, the retail line accounts for over half of the segment’s GWP. During the review period (2014-2018), health insurance saw substantial growth in the general insurance segment, growing at CAGR of 17.4%.
Motor insurance was the largest general insurance category, accounting for over 40% of the segment’s GWP. Mandatory classes, including Motor Third Party Liability, Aviation Third-party Liability and Personal Accident Insurance for owners of passenger-carrying vehicles supported the growth of the industry.
Insurers are introducing technology-based offerings to improve product access and enhance their market share. On the same time, Microinsurance is a key area of focus. In 2018, an agricultural insurance product was introduced based on the microfinance model. The government-promoted insurer INISER is part of a joint enterprise to implement this product.
The report Strategic Market Intelligence: Insurance Industry in Nicaragua - Key Trends and Opportunities to 2023, provides a detailed outlook by product category for the Nicaraguan insurance industry, and a comparison of the Nicaraguan insurance with its regional counterparts.
It provides values for key performance indicators such as written premium, total assets, total investment and total investment income during the review period (2014-2018) and forecast period (2018-2023); giving insurers access to information on segment dynamics and competitive advantages in the country. The report also gives a comprehensive overview of the Nicaraguan economy and demographics, and provides detailed information on the competitive landscape in the country.
The report provides in-depth market analysis, information and insights into the Nicaraguan insurance industry. Key Inclusions -
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