
Argentina insurance industry enters 2nd year of contraction

Argentina's insurance market continues to shrink, as an unfavorable operating environment takes its toll.
Premiums written in January were 45.0bn pesos (US$1.22bn), up 34.1% year-on-year in nominal terms but down 19.5% in real terms.
All segments and lines contracted, with the smallest fall registered in individual life, of -0.5%.
Premium growth has been in negative territory since January 2018, according to monthly estimates from watchdog SSN. Inflation was 47.6% last year.
Argentina's economic woes are denting demand, with January premiums in the two biggest segments - auto and workers compensation insurance - down 18.5% and 29.5%, respectively, in real terms. Overall P&C premiums were down 19.1% in real terms to 38.5bn pesos and life premiums were down 21.2% to 5.69bn.
The government has announced tax incentives to help spur growth of the life segment. A factor that partly explains the relative small size of Argentina's life segment is that the country has a pay-as-you-go, or public, pension scheme, which has dampened demand for life products such as annuities.
Last year economic activity in Argentina contracted at its fastest pace since 2009. Data from statistics agency
Economic growth is forecast to remain in negative territory this year, although some observers say slim green shoots of recovery are possible in the second half. The government is implementing a fiscal belt-tightening program as part of the country's multibillion-dollar bailout package from the IMF. Measures have helped keep the peso broadly steady, vital to efforts to bring down inflation and interest rates - and spur growth.
In a statement Monday, IMF South America chief Roberto Cardarelli said: "Economic activity has been weak but there are good prospects for a gradual recovery."
ALSO READ: Argentina Insurance Report
Subscribe to the most trusted business intelligence platform in Latin America. Let us show you our solutions for Suppliers, Contractors, Operators, Government, Legal, Financial and Insurance.
News in: Political Risk & Macro (Argentina)

How to achieve deeper energy integration in Latin America
Latin America has existing as well as under-construction international power links but the region’s potential in this area far exceeds what has bee...

Who may benefit first from eased capital controls in Argentina’s O&G sector?
Economy minister Martín Guzmán recently announced the measures, under which oil and gas firms are granted access to dollars, a move designed to spu...
Subscribe to Latin America’s most trusted business intelligence platform.
Other projects
Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.
- Project: Block FZA-M-541
- Current stage:
- Updated:
2 days ago
- Project: Improvements to Navigation in the Port of San Juan
- Current stage:
- Updated:
2 days ago
- Project: Dañicalqui wind farm
- Current stage:
- Updated:
2 days ago
- Project: Block FZA-M-475
- Current stage:
- Updated:
3 days ago
- Project: Block FZA-M-473
- Current stage:
- Updated:
3 days ago
- Project: Block FZA-M-471
- Current stage:
- Updated:
3 days ago
- Project: Neogreen green hydrogen plant
- Current stage:
- Updated:
2 days ago
- Project: Block FZA-M-469
- Current stage:
- Updated:
2 days ago
- Project: Block FZA-M-409
- Current stage:
- Updated:
2 days ago
- Project: Block FZA-M-407
- Current stage:
- Updated:
3 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Quadrante Viaponte Engenharia Ltda.  (Quadrante Brasil)
-
The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...
- Company: Consorcio Vial JAC 2022
- Company: Vouga Abogados
- Company: Suring Ingeniería del Sur S.A.  (Suring Ingeniería del Sur)
-
The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
- Company: Proactiva Meio Ambiente Brasil Ltda.
- Company: Tecnova Engenharia Ltda