This rise within the Mexican basic insurance coverage trade is attributed to, in line with GlobalData, a restoration in car gross sales and rising medical prices.
That is in line with GlobalData and its Insurance coverage Database. In response to the agency, the final insurance coverage market in Mexico witnessed a drop in progress to eight.9% in 2022, in comparison with 11.2% in 2021.
As well as, with the inflation fee touching a two-decade excessive in 2022, customers have been pressured to buy solely necessities and lower down on different bills, resulting in a decline within the progress of basic insurance coverage in 2022.
Private Accident and Medical health insurance was the main line of enterprise within the Mexican basic insurance coverage trade with a 32.9% share. That’s anticipated to register 10% progress in 2023 on account of rising medical prices that are leading to greater gross sales of medical insurance insurance policies.
Moreover, motor insurance coverage accounted for a 30.1% share of the final insurance coverage trade’s GWP in 2022.
Property insurance coverage is the third largest line of enterprise and accounted for 19.7% share of the final insurance coverage GWP in 2022.
Sutirtha Dutta, insurance coverage analyst at GlobalData, feedback: “The rise in insurance coverage consciousness after the pandemic can be supporting PA&H insurance coverage progress. Furthermore, the federal government’s resolution to shut Seguro Common, a program aimed to ensure common entry to well being providers, in 2020 and substitute it with different schemes has impacted 53 million individuals. That is prompting individuals to purchase non-public medical insurance within the absence of different options. In opposition to this backdrop, PA&H insurance coverage is anticipated to develop at a CAGR of 9.9% over 2023-27.”
Dutta concludes: “Excessive medical bills, rising car gross sales, and funding in infrastructure initiatives will proceed to help the expansion of the Mexican basic insurance coverage market over the following 5 years. Nonetheless, excessive inflation and rising claims from pure calamities could have a adverse impression on the profitability of basic insurers.”
