Insurance
From The Report: Peru 2017
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Though recent highs in premium income have made Peru’s insurance market one of the fastest-growing in Latin America, the country remains comparatively underinsured. Taking these two factors into consideration, the sector has been showing strong growth but from a relatively low base, and that awareness of insurance as a way of managing public and private risks is very low. These low levels of insurance penetration are influenced by Peru’s labour market informality rate of 72%, which is significantly higher than in other countries in the region.

This chapter features interviews with Socorro Heysen, Superintendent, Superintendency of Banks, Insurance and Pension Funds Administrators of Peru, and Eduardo Morón, President, the Peruvian Association of Insurance Companies.

Articles from this Chapter

Overview

Cover story: An underinsured base presents opportunities for growth
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Though recent highs in premium income have made Peru’s insurance market one of the fastest-growing in Latin America, the country remains comparatively underinsured. Taking these two factors into consideration, it is apparent that the sector has been showing strong growth but from a very low base, and that awareness of insurance as a way of managing public and private risks is very low. Background With relatively low coverage compared to the rest of Latin America, the Peruvian insurance…

Analysis

In good health: Private coverage grows in an increasingly middle-class market
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Despite the difficulties posed by a fragmented health care system, opportunities for private health insurance are abundant in Peru. Health services are provided by five main entities: Seguro Integral de Salud; Seguro Social de Salud (EsSalud); two government schemes for the armed forces and the police; and private health insurers, known as entidades prestadoras de salud (EPS). Key Players Seguro Integral de Salud is a government-run and funded health insurance scheme, which covers the most…

Interview

Premium growth: Socorro Heysen, Superintendent, Superintendency of Banks, Insurance and Pension Funds Administrators of Peru, on insurance reforms and their role in development
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Interview:Socorro Heysen What is behind the high growth in insurance premiums in recent years? To what extent is this growth sustainable in the medium to long term? SOCORRO HEYSEN: As of September 2016 net insurance premiums grew to almost PEN8.39bn ($2.49bn), 40% of which comes from general insurance classes, 21% from the private pension system (el sistema privado de pensiones, SPP) insurance, 24% from life insurance, and 15% from car and health insurance. The average growth rate of general…

Interview

Reaching out: Eduardo Morón, President, the Peruvian Association of Insurance Companies, on the future direction of the sector
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Interview: Eduardo Morón What challenges are posed by the new law allowing affiliates of pension fund administrators to withdraw 95.5% of their funds at 65 years old? EDUARDO MORÓN: The measure has resulted in thousands of affiliates withdrawing their funds after retiring. However, it is worth noting that because the pensions being withdrawn average PEN20,000 ($5928) per person this is not yet an alarming trend. This is due to the fact that the pension fund system was only created 25 years ago,…