Insurance
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.

Articles from this Chapter

Overview

Competition on the rise: New entrants and regulatory reforms heat up the sector
OBG
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With nearly double-digit growth in premiums over the last several years, Peru’s insurance sector is gaining strength. However, penetration rates in the country remain among the lowest in the region. Insurance premiums constitute only 1.5% of GDP, compared with a regional average of 3%. The government is attempting to address this shortfall through a series of reforms aimed at insurance and pension fund practices. The year 2012 saw the first stage of the implementation of the private pension fund…

Interview

OBG talks to Rafael Venegas, CEO, Rimac Seguros
OBG
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Interview:Rafael Venegas Does vertical integration, with larger firms purchasing private clinics, restrict patient choice? RAFAEL VENEGAS: The vertical integration seen over the past few years between financing and the delivery of medical services allows the industry to provide better health care for its clients and to achieve greater efficiency in monitoring their health. It is a successful model that is used by numerous well-known firms around the world. A good example of this is Kaiser…

Analysis

Process of reform: Regulatory changes are reshaping the pension fund industry
OBG
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Arguably one of the most important regulatory reforms to take place recently, the privately managed pension fund system reform was passed by Congress in May 2012. The reform can be divided into two stages with different objectives. The first stage, which was implemented in 2012, focused on increasing competition among private fund administrators (Administradoras de Fondos de Pensiones, AFP), lowering administration fees for affiliates. The second stage concentrates on expanding AFP investment opportunities…