ENDURANCE INSURANCE DRIVERS

Non-life lines are dominated by motor, which accounts for almost 50% of non-life business.Endurance Warranty offers six coverage plans. Overall insurance premium grew 11% between 20, with accumulation products clearly leading the way, growing by 19.2% (see figure below). The top 10 largest groups are responsible for 79% of total premiums, excluding accumulation products. With 74 insurance groups and a total of 114 insurance companies operating in the country, the Brazilian market is highly consolidated. By developing targeted covers, risk carriers can help attract investors and enable important projects. In addition, industrial and agricultural solutions offer huge potential. As the country recovers from the current recession, insurers can expect increasing opportunities to fill the penetration gap, for example, with products that address the needs of Brazil’s expanding middle class. Despite years of steady market growth, especially in life business, insurance penetration is still low. It is followed by Mexico, Argentina and Colombia. Especially in the case of the Rio de Janeiro Olympics, construction projects like new public transport lines and sports facilities will provide lasting benefits to society and can be expected to support recovery and future steady economic growth.īrazil remains Latin America’s largest insurance market, with around 40% of the total gross premium written. Facilities and infrastructure for the 2014 World Cup football championships and the 2016 Olympic games combined are expected to total more than €35bn. To place this in perspective, the annual GDP growth rate in Brazil averaged 2.78% from 1991 to 2016, reaching an all-time high of 10.1% in the first quarter of 1995 and a record low of -5.9% in the fourth quarter of 2015.ĭespite the current downturn, investments in infrastructure, power generation and urban development remain strong economic drivers. It was the eighth consecutive quarter of contraction.

This represented a slight improvement over the fourth quarter of 2015 (a 5.9% fall) and beat market expectations of a 6% drop. Brazil's GDP declined by 5.45% in the first quarter of 2016 in comparison the same period in 2015 (source: IBGE).

ENDURANCE INSURANCE DRIVERS

Starting in 2014, the drivers behind the expansion – above all, commodity prices – began to weaken, sending the economy into a protracted recession that continues today. The middle class has continued to grow over the years as social mobility has steadily increased. The country’s macroeconomic policy management proved itself when put to the test by the global financial crisis, with GDP declining by only 0.6% as opposed to the international average of 1.9%. From the year 2000 onward, Brazil’s gross domestic product (GDP) grew at an annual rate of around 4%. It succeeded in striking a healthy balance between political intervention and market forces, concentrating on domestic consumption as a source of impetus. When Brazil introduced the real as legal tender while at the same time reforming its social and tax systems in 1994, the country achieved an exceptionally high level of stability and set the stage for the vigorous development that followed.

Endurance insurance