Premiums reached estimated US$855mn in 2003

Peru's insurers saw total premiums hit an estimated US$855mn in 2003 backed by increased sales in the annuities and auto segments, local daily Gestion quoted industry sources as saying. The figure would amount to a US$5mn rise compared to US$850mn in 2002 and was attributed to increased demand in the life insurance segment as well as higher sales of obligatory transit insurance, known locally as Soat. Last year saw continued premium growth within the life insurance segment due to a rise in the sale of individual policies attributed largely to the increased number of affiliates to the country's private sector pension system or SPP. Sales of Soat premiums, meanwhile, rose 24.3% as of end-November last year, compared to the same time 2002. According to Cesar Vega, commercial manager at local insurer Sul America, Peru's insurance industry will see moderate growth over the coming 12 months with companies concentrating on the development of new products geared to lower- income segments.