Insurance
From The Report: Mexico 2017
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Despite challenges, and as the Mexican insurance sector laboured to meet new reporting standards, signs of strength have been showing in terms of profitability and premium growth. As rising costs were passed on to clients due to the weak exchange rate, some segments – notably health – have seen a rise in premiums. It is expected, however, that regulatory reforms will ultimately limit the rising cost burden faced by consumers. A bigger growth opportunity lies in increasing the penetration rate – currently at half the level of leading Latin American countries like Chile – while the eventual ageing of the still relatively young population bodes well for demand for the whole range of products, particularly life insurance and pensions. After a strong performance in 2016, prospects for 2017 look good but are clouded by the uncertain macroeconomic environment. Factors may vary, but what is agreed is that concrete plans are needed in order to boost the overall penetration rate in the country. This chapter contains an interview with Mario Vela Berrondo, President, Mexican Association of Insurance Companies.

Articles from this Chapter

Overview

Premium growth: Underwriters look for ways to improve the sector and reach greater penetration levels
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Given the relatively high administration costs, and low profitability, serving the insurance sector in Mexico has not traditionally been a priority for leading market players. The country can be a challenging market for insurers to operate in as it is exposed, for instance, to a full range of natural disaster risks including earthquakes, active volcanoes, hurricanes, and tsunamis. At the same time, concentrations of organised crime in certain regions pose an additional persistent threat to property.…

Analysis

Getting it covered: Auto insurance companies explore ways to increase uptake
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Mexico is one of the few countries where there is no mandatory legal requirement for all drivers to be insured at all times. It is perhaps unsurprising therefore that, according to the Mexican Association of Insurance Companies (Asociación Mexicana de Instituciones de Seguros, AMIS), only 27% of cars in the country were insured in 2016, down marginally from 28% a year previously. This is strikingly low compared to other countries in Latin America, where the figures in Brazil and Uruguay were 75%…

Interview

Driving through: Mario Vela Berrondo, President, Mexican Association of Insurance Companies, on building risk capacity, increasing penetration and new legal reforms
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Interview:Mario Vela Berrondo Mexico’s insurance penetration still lies at around 2% of its GDP. How can this rate be increased, and what would be an ideal penetration rate for 2020? MARIO VELA BERRONDO: The Mexican Association of Insurance Companies (Asociación Mexicana de Instituciones de Seguros, AMIS) has developed a market plan involving three pillars – public policy, internal tasks and insurance regulation – geared towards increasing the penetration rate to 3.4% of Mexico’s…