Insurance offers coverage to individuals or companies in the case of a future loss or injury, e.g. damage after a car crash, items stolen from home, etc. In 2018, Europe was the region that concentrated the largest share of insurance premiums worldwide, followed by Asia-Pacific, and North America. These three territories combined accounted for more than 90 percent of the global premiums.
Insurance market in Latin America
Before 2020, the insurance industry in Latin America benefited from the region’s recent stable rise in economic growth, which has led to growth across various other sectors too. By the end of 2018, the share of insurance premiums in Latin America’s gross domestic product (GDP) ranged from 4.6 percent in Chile to 0.4 percent in Venezuela, countries with the highest and lowest insurance density in the region, respectively.
The two major insurance types in Latin America are life insurance and non-life insurance. The former includes individual and group life, as well as social protection insurances; while the latter consists of car, health, accident, among other insurances. In 2018, the non-life segment accounted for more than 55 percent of the market in Latin America, being Brazil the country with the highest non-life premium volume in the region.
Insurtech
With an increasing number of new companies among the financial technology sector, the insurance market has not been left behind. Only in Latin America, there are at least 180 new Insurtech companies improving the efficiency and security of the insurance industry in the region. Among these new companies, QuintoAndar – a Brazilian fintech platform – stands out as the one that has raised the largest funding value, receiving nearly 90 million U.S. dollars in the last three years.
