Yuri de Mesquita Bar / istockphoto.com
Insurers see increasing growth opportunities in Latin America through the development of products for the lower income population which will help reduce the protection gap in the region.
Most of the population in Latin America is still uninsured. Insurance accounts for less than 3 percent of gross domestic product (GDP) in countries such as Mexico and Colombia and it is only moderately higher in Brazil and Chile, according to consultancy firm EY.
Among the reasons for the low insurance penetration is that most of the population is low-income and unbanked and therefore not yet viable consumers of insurance products, according to the EY 2017 Latin American Insurance Outlook.
But the interest in serving the low-income market is growing among insurers. Almost half of insurers not currently serving the low-income market are planning to offer mass-market products in Latin America, while 33 percent plan to offer microinsurance, according to the Microinsurance Network, an industry group.
Latin America, Insurance, Reinsurance, Growth, Microinsurance, Pilar González de Frutos, Dirk Reinhard, Katharine Pulvermacher