From The Report: Peru 2018
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The Peruvian insurance sector has experienced its fair share of volatility in recent years. After registering gross premium growth of 17.8% and 24.3% in 2014 and 2015, respectively, 2016 saw the industry contract by around 3.5%, according to a report issued by BMI Research. The sector’s poor performance was due mainly to a reduction in investment across the economy, damage caused by the El Niño weather pattern, weaker private consumption and a new regulation that allowed up to 95% of pension funds to be withdrawn. However, the industry appears to have rebounded somewhat, experiencing moderate growth in 2017 encouraged by rising household incomes and personal savings, continuing growth in the individual life segment, and increasing knowledge and popularity of products among the general public. Additionally, innovative products aimed at attracting previously neglected or underinsured areas should provide significant room for the industry to expand.