Argentina Insurance Report Q4 2011

Published : August 2011
No. of Pages : 68

Price:

* At first glance, Argentina looks like a medium-sized but rapidly growing insurance market that is open to entry by any multinational company that wishes to establish operations in the country. Domestic and foreign banks and insurers perceive there to be advantages from bancassurance.
* In practice, non-life penetration appears to be stuck at a fairly low level, life density is small and the competitive landscape is ludicrously fragmented. Brazil is an insurance market where established protagonists see opportunities from massive distribution deals with foreign multinationals. Argentina is a market where there may be significant barriers to exit.
* There is no obvious reason why the constraints faced by the insurance sector should disappear anytime soon. The nationalisation of the private pension funds in late 2008 stands out as a classic reason why Argentines with the wealth and desire to save for the future will likely use channels other than life insurance from a locally regulated company.
Argentina remains an insurance backwater. Superintendencia de Seguros de la Nación (SSN)’s latest data indicates that in Q111 non-life and life insurance premiums were about 17% and 34% higher than they had been a year earlier. However, the growth in the non-life segment is almost entirely the result of the increase in nominal GDP. Life density remains at a low level. By most metrics, the insurance sector and the various entities that comprise it (be they local companies or subsidiaries of multinational giants) are undersized. Risk-tolerant Argentine households and businesses are using non-life insurance to a significant extent. However, it is difficult to envisage that they will buy a significantly greater variety of products, nor that they will bear meaningfully higher premiums. The very low life density indicates that, unlike in Brazil for example, there are many other attractive channels for organised savings.
We do not see any catalyst for change in the life segment. Although Santander and Zurich will be combining their businesses in Argentina (as in the rest of Latin America) in early 2012, it is not clear that this will have a major impact on the competitive landscape. Given the challenges previously faced by the country’s savers (eg: at the time of the nationalisation of the private pension funds in late 2008), it is perhaps surprising that premiums have come to exceed US$1.5bn per annum. The life insurers themselves have to find suitable long-term assets to offset the liabilities associated with the policies that they write.
Historically that has been quite difficult in Argentina and probably remains so.
Given the potential for economic growth, the outlook for the (much larger) non-life segment looks more favourable. However, this is partly because the relationship between the insurers and their clients is shortterm by nature. In a market that is dominated by small, often mutual, operators that do not clearly have pricing power, it is difficult to identify which organisations will be the clear winners from the development of the non-life segment.

Executive Summary ........................................................................................................................................ 5
Table: Total Premiums, 2008-2015 ...................................................................................................................................................................... 5
Key Insights And Key Risks ................................................................................................................................................................................... 5
SWOT Analysis ................................................................................................................................................ 7
Argentina Insurance Industry SWOT .................................................................................................................................................................... 7
Argentina Political SWOT .................................................................................................................................................................................... 7
Argentina Economic SWOT .................................................................................................................................................................................. 8
Argentina Business Environment SWOT ............................................................................................................................................................... 8
Life .................................................................................................................................................................... 9
Latin America Life Sector Overview .......................................................................................................................................................................... 9
Table: Latin America’s Life Premiums, 2008-2015 (US$mn) ............................................................................................................................... 9
Argentina Life Sector Update................................................................................................................................................................................... 12
Industry Forecast Scenario ...................................................................................................................................................................................... 13
Table: Life Premiums, 2008-2015 ....................................................................................................................................................................... 13
Growth Drivers And Risk Management Projections ................................................................................................................................................ 13
Population .......................................................................................................................................................................................................... 13
Table: Insurance Key Drivers – Demographics, 2005-2015 ............................................................................................................................... 14
Non-Life .......................................................................................................................................................... 16
Latin America Non-Life Sector Overview ................................................................................................................................................................ 16
Table: Latin America’s Non-Life Premiums, 2008-2015 (US$mn) ...................................................................................................................... 16
Argentina Non-Life Sector Update ........................................................................................................................................................................... 18
Table: Breakdown Of Premiums, 2010 (ARSmn) ................................................................................................................................................ 18
Industry Forecast Scenario ...................................................................................................................................................................................... 19
Table: Non-Life Premiums, 2008-2015 ............................................................................................................................................................... 19
Growth Drivers And Risk Management Projections ................................................................................................................................................ 20
Macroeconomic Outlook ..................................................................................................................................................................................... 20
Table: Argentina – Economic Activity, 2007-2015 ............................................................................................................................................. 21
Political Stability Outlook ................................................................................................................................................................................... 21
Table: Argentina’s Risk Ratings ......................................................................................................................................................................... 22
Table: Pre-Election Policies, 2011 ..................................................................................................................................................................... 24
Healthcare .......................................................................................................................................................................................................... 25
Healthcare Insurance ......................................................................................................................................................................................... 26
Epidemiology ...................................................................................................................................................................................................... 27
Table: Insurance Key Drivers – Disability-Adjusted Life Years, 2005-2015 ....................................................................................................... 27
Motor Insurance ................................................................................................................................................................................................. 29
Table: Insurance Key Drivers – Autos, 2005-2015 ............................................................................................................................................. 29
Insurance Risk/Reward Ratings ................................................................................................................... 31
Table: Argentina’s Insurance Risk/Reward Rating ............................................................................................................................................. 31
Table: Latin America Insurance Risk/Reward Ratings ....................................................................................................................................... 32
Competitive Landscape ................................................................................................................................ 33
Latin America Competitive Landscape ............................................................................................................................................................... 33
Major Players In Argentina’s Insurance Sector .................................................................................................................................................. 36
Ta

Argentina Insurance Report Q4 2011

Published By: Business Monitor International

Price:

How to Purchase

Purchase products from our site in 5 easy steps. Please follow the description given below to complete your purchase process.

Step 1:

Select the report title of your interest, and Click on Buy Now button next to the Price option.

Step 2:

You will arrive at the Purchase page, where you will be requested to Signup (New User) or Login (Registered User). Please note that in-keeping with the security check on the website, you must submit your full details to avoid any inconvenience arising from incorrectly entered data or counterfeit information.

Step 3:

After SignUp/Login, you will arrive at the Online Invoice Page. Select a Payment option via various methods: Debit Card / Credit Card / by Invoice. MarketReportOnline accepts Visa, MasterCard, American Express and all major credit cards. MarketReportOnline uses ICICI, HDFC, Citibank, American Express & Paypal as our Online Payment Gateway Partners. Clicking on a payment option will take you to the corresponding Payment Gateway page.

Step 4:

Once at the Payment Gateway, please complete the Payment Process to purchase your desired report.

Step 5:

Once you have successfully completed the purchase process, you will receive a confirmation email. You will then either be able to download your report immediately (in PDF Format) from the Account Login button, or the report will be emailed to you directly, depending upon the agreement we have with the publisher. For Orders that are deliverable via email and placed after working hours, the delivery of the reports will be made on the next business day. Please note, if you select purchase by invoice, you will receive your report only once the payment has been received. If you have any queries about how to order, please Contact Us .

sales@marketreportsonline.com + 1 888 391 5441

Using our subscription option, you get access to market research reports and industry data of Industry Profiles market as per your needs. Get the best of Industry Profiles research reports by utilizing your research budgets in an optimum way.
More about our Subscription option

Get Email alerts about market research reports from industries and publishers of your interest: