Exec: Pricing war begins in insurance sector

A pricing war has begun in the Peruvian insurance sector, especially in the fire segment, daily Gestión reported Bruno Orlandini, CEO of insurer Generali Peru as saying. "The tough international market lasted considerably less time than expected and in Peru a pricing war has begun, above all to capture large accounts in the fire segment," Orlandini said. There is a limited number of large accounts in the Peruvian insurance sector, so when there is an initiative to capture a large segment of the market, the only solution is to lower prices, Orlandini added. The executive expects a 10% drop in general insurance premiums by the end of the year and between a 10% and 15% drop in life policies. Representatives of the Peruvian insurance market expect profits in the sector to rise between 3-5% compared to 20% registered last year. The Generali group is comprised of 614 companies that are directly or indirectly controlled by Italy's largest insurance company Assicurazioni Generali.