Fixed-term annuities help drive Peru insurance growth
Net premiums written in Peru in January-June totaled 12.0bn soles (US$3.65bn), up 7.2% year-on-year, sector association Apeseg said.
In nominal terms, premium growth was 8.5%.
Apeseg technical studies manager Héctor Lucero said in a release that the increase was mainly due to demand for fixed-term annuities. Premiums corresponding to this type of product totaled 684mn soles in the 12 months through June. Over the same period standard retirement annuities totaled 133mn soles.
Fixed-term annuities were introduced following a controversial reform of the pension system in 2016. Under the reform, pension fund members can withdraw nearly all their savings on retirement - and many have done so.
This outflow of assets led to a drop in annuity premiums, but the introduction of fixed-term annuities products has helped life insurers recover a significant part of their lost business, Diego Kashiwakura, senior analyst and VP at rating agency Moody's, says in the BNamericas Intelligence Series report titled How Peru's Financial Services Industry Weathers Political Storms.
In the 12 months through June, the fastest-growing segment was life insurance, up 26.8%, with P&C eking out growth of 0.7%. The segment linked to the country's private pension system - which includes standard retirement annuities - contracted 9.6%.
Within the P&C segment, contractor all-risk, surety and theft insurance premiums grew while motor vehicle, fire and earthquake premiums contracted.
Overall claims totaled 6.44bn soles, down 16.6%, with the biggest drop in the P&C segment.
Paid claims under the government's catastrophic agricultural insurance (SAC) scheme for the 2017-18 growing season were 16mn soles, largely flat compared with the previous two seasons, Apeseg said. Premiums written fell to 36.2mn soles from 38.7mn soles.
INSURANCE DAY
In related news, on September 11 in capital Lima, Apeseg will host Insurance Day, a new industry event. Sector experts will explore the topics of digital transformation in insurance, natural disaster coverage and changes in the local pension system. Speakers include Apeseg chief Eduardo Morón (pictured), housing minister Javier Román Piqué del Pozo, IDB economist Mariano Boscho, local insurtech Hello Zum founder Carlos Vidal, Yuri Van Geest of US think-tank Singularity University and Andrea Camargo of the Microinsurance Catastrophe Risk Organisation.
Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.
News in: Political Risk & Macro (Peru)
Ecuador's battle against organized crime: The rising threat to the region
"What we're seeing in Ecuador is a combination of events we've already seen in Mexico and Colombia. Drug trafficking spread its tentacles when they...
‘In general terms, Latin America has a favorable investment climate’
BNamericas talks to Milton Cheng, global chair of international law firm Baker McKenzie.
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: O'Higgins Hospital Network: Rengo Hospital
- Current stage:
- Updated:
2 days ago
- Project: Yacyretá hydroelectric dam expansion
- Current stage:
- Updated:
2 days ago
- Project: Yumpag
- Current stage:
- Updated:
2 days ago
- Project: Cumaru-Gradaús
- Current stage:
- Updated:
10 hours ago
- Project: Sewerage system and water treatment of the city of Puerto Maldonado (Puerto Maldonado WWTP)
- Current stage:
- Updated:
2 days ago
- Project: Mexico Lindo Solar PV I photovoltaic park, El Chapote
- Current stage:
- Updated:
2 days ago
- Project: O'Higgins Hospital Network: Pichilemu Hospital
- Current stage:
- Updated:
2 days ago
- Project: San Nicolás
- Current stage:
- Updated:
2 days ago
- Project: Closure of the Combined Cycle of the Brigadier López Thermoelectric Plant
- Current stage:
- Updated:
2 days ago
- Project: Solaroz
- Current stage:
- Updated:
2 days ago
Other companies
Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.
- Company: Sicilsaldo SpA  (Sicilsaldo)
-
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: Puroil S.L  (Puroil)
-
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: Powerway Renewable Energy Co. Ltd.
- Company: Jinko Solar Chile
- Company: Measures Solutions, S. de R.L. de C.V.  (Measure Solutions)
-
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: Coopsa Ambiental S.A. de C.V.  (Coopsa Ambiental)
-
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: GA Energy Services, S.A.P.I. de C.V.  (GA Energy Services)
-
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: UTE Benito Roggio e Hijos S.A. - Mijovi S.R.L.  (UTE Benito Roggio e Hijos - Mijovi)
-
UTE Benito Roggio e Hijos S.A. - Mijovi S.R.L. is a partnership formed by Benito Roggio e Hijos S.A. and Mijovi S.R.L. for the implementation of the project Highway Santiago del...