This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent.
» The upcoming Olympic Games 2016 have boosted public spending on infrastructure projects, helping in increasing the employment levels and the income levels, further boosting the insurance market.
» Brazil as the host of the World Cup in 2014 will further spur infrastructure investment and employment health.
» US and Euro economic weaknesses will take a toll on export levels. However, higher than anticipated Chinese demand should boost export growth both this year and next.
» Banco do Brasil‘s entre into the market (with new partner Mapfre) could trigger competitive pressures.
» The Itaú/Unibanco merger - noteworthy as part of a changing competitive landscape
» Porto Seguro and Itau Unibanco merger of their residential and auto-insurance operations became Brazil's largest auto and residential insurer, with more than three million auto policies and more than one million residential policies, and the third largest Brazilian insurer overall.
Source: Mondaq, Brazil: Growing Pains In A Newly "Opened" Reinsurance Market, March 2010
» Insurance is of high importance to the customers and, in most cases, not a legal requirement (except for DPVAT, compulsory people injury liability for automobiles)
» However, consumer loyalty in the sector is low with many willing to shop around (leveraging new technologies) for the best deal, prices and comprehensive cover.
» According to Fitch, the Brazilian insurance market remains the largest in the Latin American region, with total written premiums reaching 94bn Reais (US$55.8bn) in January-September, excluding health insurance.
» The life insurance segment accounts for approximately 51% of premium revenues
» Complementary healthcare is typically one of the first things that individuals buy when purchasing power increases.
» The growth of the Brazilian middle class should continue to drive the complementary health market, as should the ―formalization‖ of the economy (companies that pay taxes generally provide better benefits to employees, including complementary health care).
» To stimulate competition and reduce prices for personal lines insurance, the Brazilian government removed the previously existing prohibition against life insurers selling home and personal casualty insurance. The regulatory change is the first step in the implementation of the "Minha Casa, Minha Vida" (My House, My Life) program created by Article 79 of Law No. 11.977.
. Source: Goldman Sachs, Brazil: Insurance: Multi-Line, March 2010