From The Report: Peru 2014
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While the insurance sector has seen sustained growth in premiums over the past several years, rising 10.12% in 2011 and 9.62% in 2012, penetration rates remain among the lowest in the region, with insurance premiums constituting 1.5% of GDP, compared to the regional average of 3%. The government is attempting to address this shortfall through a series of reforms aimed at reducing the cost of insurance and pension fund premiums and commissions. Overall, low market penetration and continued economic growth mean that the insurance industry has a lot of unexploited potential. With the entrance of several new players in 2013, competition is likely to heat up. This increase coupled with stronger regulation and gradual product diversification will help to ensure that citizens benefit the most from international insurers’ newfound interest in the Peruvian market. This chapter includes an interview with Rafael Venegas, CEO of Rimac.