Insurance
From The Report: Mexico 2019
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Although the sector’s medium-term growth is likely to be impeded by weak economic conditions, the Mexican Association of Insurance Companies forecast that total premium would rise by 3.4% in 2019, though downgrades have been made in subsequent forecasts. This is likely to weigh most heavily on the non-life segment due to the impact of fiscal austerity on government spending. The life segment, meanwhile, is expected to continue to perform well, but its expansion will still be constrained by the weaker labour market. In the longer term, economic recovery and increases in real wages are expected to gradually reduce poverty rates and broaden the potential market for both life and non-life plans. With insurance penetration still only around half the level of the more advanced Latin American countries, there is significant scope for growth in the years ahead. This chapter contains an interview with Mario Vela Berrondo, CEO, Prudential Insurance México.

Articles from this Chapter

Overview

Premium potential: Total profit continues to rise in spite of economic headwinds, particularly in the life segment
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Mexico is very much a multi-risk insurance market. In addition to natural disasters such as earthquakes, active volcanoes, hurricanes and tsunamis, high levels of organised crime in certain parts of the country pose a constant risk to individuals and property. Despite this high potential for growth, the sector’s development has been held back by disappointing economic growth in recent decades. Around 50% of Mexico’s 129.5m-strong population still live in poverty, making them effectively shut…

Interview

Key elements: Mario Vela Berrondo, CEO, Prudential Insurance México, on how technology and demographics are shaping the industry
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Interview:Mario Vela Berrondo How would you characterise the strength and resilience of the insurance industry in the face of external and internal economic challenges? MARIO VELA: Both the insurance industry and the broader economy have faced a number of challenges in recent years. However, the implementation of new initiatives, such as the Solvency II regulatory standards, has helped insurance companies develop a more robust corporate governance framework – one where risk management,…

Analysis

Tailored offerings: New distribution channels look set to benefit micro-insurers as they seek to reach rural and unbanked populations
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Reaching lower-income segments of the population is notoriously challenging for insurers. In a country such as Mexico, where almost half of the 129.5m-strong population lives below the poverty line and the insurance culture is still underdeveloped, this is particularly difficult. As a result, Mexico has become a leading developer of micro-insurance plans, which are tailored to customers with limited financial resources. According to the National Commission of Insurance and Surety, in 2018 there…

Overview

Digital disruption: Insurance technology (insurtech) taps premium growth potential in emerging markets
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Two of the biggest trends in global insurance in recent years are premium growth in emerging markets and the rising importance of technology across the supply chain. The latter has come to be referred to as insurtech, a potentially disruptive trend that heralds both threats to and opportunities for incumbents and newcomers alike. While technological solutions are being applied along the length of the insurance supply chain in advanced markets, their focus in emerging markets has primarily been on driving premium growth. Stronger growth in emerging and developing economies since the turn of the century has given rise to a swelling middle class.…

Overview

Digital disruption: Insurance technology (insurtech) taps premium growth potential in emerging markets
OBG
plus

Two of the biggest trends in global insurance in recent years are premium growth in emerging markets and the rising importance of technology across the supply chain. The latter has come to be referred to as insurtech, a potentially disruptive trend that heralds both threats to and opportunities for incumbents and newcomers alike. While technological solutions are being applied along the length of the insurance supply chain in advanced markets, their focus in emerging markets has primarily been on driving premium growth. Stronger growth in emerging and developing economies since the turn of the century has given rise to a swelling middle class.…