Despite challenges, LAC premiums grew in 2016

Written premiums in Latin America and the Caribbean's insurance sector rose to nearly US$147bn in 2016, up 1.2% over 2015, the first positive growth for three years.

The data, provided in a report by Fundación Mapfre, tracked the 19 largest markets in LAC, showed the regional expansion was largely supported by 2.6% real annual growth in Brazil, which accounts for more than a third of the region's premiums. In particular there was 8.3% growth in life insurance premiums in the country.

The Mapfre report described 2016 as "an inflection point" in terms of economic growth in the region, with global monetary policies aimed at "re-flation" efforts in the second half of the year and oil prices beginning to creep up from historic lows.

However, the recessions in Argentina and Brazil and economic weakness in multiple countries resulted in lower demand and impaired growth in the non-life segment. Furthermore, political uncertainty in the countries, as well as the election of US President Donald Trump held back consumer confidence, reducing the strength of economic recovery.

The following shows total premiums at the end of 2016 and real-term growth or contraction compared to 2015 for the largest 10 markets:

Total premiums:

Brazil: US$59.0bn, +2.6%

Mexico: US$23.6bn, +10.3%

Argentina: US$16.5bn; -4.6%

Puerto Rico: US$12.9bn; +6.0%

Chile: US$12.3bn; +8.0%

Colombia: US$7.82bn; +3.1%

Peru: US$3.35bn; -7.5%

Venezuela: US$2.03bn, -25.5%

Ecuador: US$1.62bn, -4.5%

Panama: US$1.40bn, -0.2%

Life:

Brazil: US$37.5bn, +8.3%

Mexico: US$11.1bn, +10.7%

Argentina: US$38.0bn; -5.0%

Puerto Rico: US$1.27bn; +0.8%

Chile: US$7.78bn; +11.7%

Colombia: US$2.45bn; +9.9%

Peru: US$4.59bn; -13.4%

Venezuela: US$23mn, -30.0%

Ecuador: US$347mn, +15.6%

Panama: US$346mn, +5.5%

Non-life:

Brazil: US$21.4bn, -6.1%

Mexico: US$12.5bn, +9.8%

Argentina: US$13.9bn; -4.6%

Puerto Rico: US$11.6bn; +6.6%

Chile: US$4.50bn; +2.1%

Colombia: US$5.37bn; +0.3%

Peru: US$6.67bn; -2.9%

Venezuela: US$2.01bn, -25.4%

Ecuador: US$1.27bn, -8.8%

Panama: US$1.05bn, -3.0%