Opportunities in Brazil Insurance Market

Opportunities in Brazil Insurance Market published by RNCOS E-Services Pvt. Ltd. in November, 2007. This report consists of 75 Pages and the price starts from US $ 500.

Introduction

Abstract

The RNCOS report on "Opportunities in Brazil Insurance Market" provides extensive research and in-depth analysis on the insurance sector in Brazil. It helps clients to analyze the leading-edge opportunities critical to the success of the insurance industry in the country. Detailed data and analysis helps clients navigate the evolving insurance markets of the region.

The forecast given in this report is not based on a complex economic model, but is intended as a rough guide to the direction in which the market is likely to move. This forecast is based on a correlation between past market growth and growth of base drivers.

Market Analysis

A large population makes Brazil the biggest potential insurance market in Latin America, ahead of Mexico and Argentina, but despite the rapid growth in the past three years (2004-2006), its population remains underinsured. There is considerable vertical integration between the insurers and the banks. Most of the larger banks, such as Banco Bradesco and Unibanco, offer a full range of insurance services. Insurance companies, like financial institutions, invest heavily in government securities and have little exposure to the volatile equity market.

Driven by a strong rise in purchases of life insurance, which is reflecting strengthening real incomes and increased confidence in macroeconomic stability, the Brazilian insurance market has been expanding rapidly since 2003. Overall, the market remains small, with total premiums accounting for just over 2.8% of GDP in 2006.

Key Findings

• Brazilian Life and Retirement Savings market, in premium terms, is expected to grow at the compounded rate of 18.89% during 2007-2011.
• Automobile insurance is anticipated to grow at the compounded rate of 14.16% during 2007-2011, while Health insurance sector is projected to grow at a CAGR of nearly 13% for the period spanning from 2007 to 2011.
• Homeowner insurance is projected to grow at the CAGR of nearly 14% from 2007 to 2011, mainly due to continuous declining interest rates in Brazil.
• Of the total premium income, general insurance accounted for almost one-half and automobile insurance accounted for one-third total premium income in 2005.
• There are ample opportunities for the IT sector as total spending on this sector by insurance sector is projected to grow at the compounded rate of 14.42% during 2007-2011.
• The liberalization of reinsurance market will lead to rise in FDI.
• Brazilian insurers prefer mutual funds as investment instrument.
• "Capitalization" is a unique product with Brazilian insurers which combines savings with the National Lottery.
• Bancassurance is the dominant distribution channel for individual life insurance, retirement savings, and capitalization products.

Key Issues & Facts

• What are driving factors for the insurance industry (life and non-life insurance) in Brazil?
• How is the growth in retirement savings and automobile insurance driving the insurance sector?
• What are the emerging opportunities and challenges for the industry players?
• What are the most prospective areas for investments in the insurance sector in near future?
• Who are the key players in the Brazilian insurance market?

Research Methodology Used

Information Sources

Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Methods

The analysis methods include ratio analysis, historical trend analysis, linear regression, analysis using software tools, judgmental forecasting and cause and effect analysis.

Table of Contents

1. Analyst View

2. Global Insurance Industry

• 2.1 Overview
• 2.2 Top Insurance Countries

3. Latin America Insurance Industry

• 3.1 Overview
• 3.2 Brazil in Context of Latin America
• 3.3 Top Insurance Countries

4. Brazil Insurance Industry

• 4.1 Overview
• 4.2 Total Market Value (Direct Premium)
• 4.3 Insurance Market Participation in GDP
• 4.4 Top Ten Insurance Companies

5. Performance

• 5.1 General Insurance Market
  • 5.1.1 Personal Lines
    • 5.1.1.1 Automobile Insurance
    • 5.1.1.2 Homeowners' Insurance
  • 5.1.2 Commercial Lines
    • 5.1.2.1 Standard & Specialty Accounts
    • 5.1.2.2 Large Accounts
  • 5.1.3 Specialty Lines
• 5.2 Life & Retirement Savings Market
  • 5.2.1 Retirement Savings
• 5.3 Capitalization Market
• 5.4 Key Products
  • 5.4.1 VGBL (Vida Gerador de Beneficio Livre)
  • 5.4.2 PGBL (Plano Gerador de Beneficio Livre)
• 5.5 Health Insurance Market

6. Industry Analysis

• 6.1 Drivers
  • 6.1.1 Tax Advantage
  • 6.1.2 Bancassurance
  • 6.1.3 Automobile Insurance
  • 6.1.4 Rising Affordability
  • 6.1.5 Rising Crime Rate
  • 6.1.6 Increasing Population
• 6.2 Opportunities
  • 6.2.1 IT Industry
  • 6.2.2 Mutual Funds
  • 6.2.3 Banking Sector
  • 6.2.4 Pharmaceutical Market
  • 6.2.5 Reinsurance Market
• 6.3 Challenges
  • 6.3.1 Mutual Funds
  • 6.3.2 Economic Disparity
  • 6.3.3 Crime & Insurance Frauds
  • 6.3.4 Intense Price Competition

7. Future Outlook (2007-2011)

• 7.1 Life & Retirement Savings Market
  • 7.1.1 Retirement Savings
• 7.2 General Insurance Market
  • 7.2.1 Automobile Insurance
  • 7.2.2 Homeowners' Insurance
• 7.3 Health Insurance Market

8. Key Players

• 8.1 Unibanco Holdings S.A.
• 8.2 Brasilprev Seguros e Previdência S.A.
• 8.3 HSBC Seguros (Brasil) S.A.

9. Annexure

• 9.1 Reinsurance Market
• 9.2 Government Regulations

List of Figures:

• Figure 2-1: Global - Share of Life & Non-Life Insurance Premium (%), 2006
• Figure 3-1: Latin America - Share of Brazil by Insurance Premium (%), 2006
• Figure 3-2: Latin America - Top Insurance Countries by Premium (in Million US$), 2004-2006
• Figure 4-1: Brazil - Types of Companies in the Insurance Market (%), 2005
• Figure 4-2: Brazil - Share of Insurance Premium by Line (%), 2005
• Figure 4-3: Brazil - Direct Insurance Premium (in Million BRL), 2004-2006 & Jun 2007
• Figure 4-4: Brazil - Share of Insurance Market in GDP (%), 1999-2006E
• Figure 5-1: Brazil - Share of Foreign & National Capital in Insurance Market (%), 2005
• Figure 5-2: Brazil - Direct Insurance Premium (in Million BRL), Jan 2005 to June 2007
• Figure 5-3: Brazil - Earned Premium & Retained Loss for Insurance Market (in Million BRL), 2005, 2006 & Jun 2007
• Figure 5-4: Brazil - Loss Ratio of Insurance Market (%), 2005, 2006 & Jun 2007
• Figure 5-5: Brazil - Direct Automobile Insurance Premium (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-6: Brazil - Earned Premium & Retained Loss for Automobile Insurance Market (in Million BRL), 2005, 2006 & Jun 2007
• Figure 5-7: Brazil - Loss Ratio of Automobile Insurance Market (%), 2005, 2006 & Jun 2007
• Figure 5-8: Brazil - Direct Homeowners' Insurance Premium (in Million BRL), 2003-2006E
• Figure 5-9: Brazil - Life & Retirement Savings Premium (in Billion BRL), 2002-2006E
• Figure 5-10: Brazil - Cumulative Provision of Retirement Savings (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-11: Brazil - Retirement Savings Premium (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-12: Brazil - Capitalization Premium (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-13: Brazil - VGBL Premium (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-14: Brazil - PGBL Premium (in Million BRL), Jan 2005 to Jun 2007
• Figure 5-15: Brazil - Health Insurance Premium (in Million BRL), 2001-2006
• Figure 6-1: Brazil - Share of PGBL in Retirement Savings (%), Jun 2007
• Figure 6-2: Brazil - Share of Direct Automobile Premium in Insurance Market (%), Jun 2007
• Figure 6-3: Brazil - Disposable Income per Head (in US$), 2002-2008F
• Figure 6-4: Brazil - Middle Class Population (in Million), 2000 & 2005
• Figure 6-5: Brazil - Forecast for Population Growth (in Million), 2007-2011
• Figure 6-6: Brazil - Forecast for Spending on IT Industry by Insurance Sector (in Million US$), 2007-2011
• Figure 6-7: Brazil - Forecast for Spending on IT Industry by Life Insurance Sector (in Million US$), 2007-2011
• Figure 6-8: Brazil - Forecast for Spending on IT Industry by Non-Life Sector (in Million US$), 2007-2011
• Figure 6-9: Brazil - Insurance & Retirement Savings Companies Investment Portfolio (%), Jun 2006
• Figure 6-10: Brazil - Investment Portfolio of Capitalization Companies (%), Jun 2006
• Figure 6-11: Brazil - Forecast for Pharmaceutical Market (in Million US$), 2007-2011
• Figure 7-1: Brazil - Forecast for Life & Retirement Savings Premium (in Billion BRL), 2007-2011
• Figure 7-2: Brazil - Forecast for Cumulative Provision of Retirement Savings (in Million BRL), 2007-2011
• Figure 7-3: Brazil - Forecast for Commercial Vehicle Registrations (in ‘000), 2007-2011
• Figure 7-4: Brazil - Forecast for Direct Automobile Insurance Premium (in Million BRL), 2007-2011
• Figure 7-5: Brazil - Forecast for Direct Homeowners' Insurance Premium (in Million BRL), 2007-2011
• Figure 7-6: Brazil - Forecast for Health Care Spending per Head (in US$), 2007-2011
• Figure 7-7: Brazil - Forecast for Health Insurance Premium (in Million BRL), 2007-2011

List of Tables:

• Table 2-1: Global - Life & Non-Life Insurance Premium (in Million US$), 2003-2006
• Table 2-2: Global - Top Insurance Countries by Premium Written (in Million US$), 2006
• Table 2-3: Global - Top Insurance Companies by Revenue (in Million US$), 2006
• Table 2-4: Global - Top Property/Casualty Insurance Companies by Revenue (in Million US$), 2006
• Table 2-5: Global - Top Life/Health Insurance Companies by Revenue (in Million US$), 2006
• Table 2-6: Global - Top Insurance Brokers by Revenue (in Million US$), 2006
• Table 2-7: Global - Top Reinsurers by Net Reinsurance Premium Written (in Million US$), 2005 & 2006
• Table 3-1: Latin America - Insurance Premium by Country (in Million US$), 2006
• Table 4-1: Brazil - Top Ten Insurance Companies by Premium (in Million BRL), Jun 2007
• Table 5-1: Brazil - Direct Automobile Insurance Premium by Company (in Million BRL), Jun 2007
• Table 5-2: Brazil - Retirement Savings Premium by Company (in Million BRL), Jun 2007
• Table 5-3: Brazil - Capitalization Premium by Company (in Million BRL), Jun 2007
• Table 5-4: Brazil - VGBL Premium by Company (in Million BRL), Jun 2007
• Table 5-5: Brazil - PGBL Premium by Company (in Million BRL), Jun 2007
• Table 6-1: Brazil - Top Banks Affiliated to Insurance Group & its Share (%), Jun 2006
• Table 6-2: Brazil - Top Banks Affiliated to Capitalization Group & its Share (%), Jun 2006
• Table 8-1: Unibanco Holdings S.A. - Key Financials (in Million BRL), 2005 & 2006
• Table 8-2: Brasilprev Seguros e Previdência S.A. - Key Financials (in Million BRL), 2005 & Jun 2006
• Table 8-3: HSBC Seguros (Brasil) S.A. - Key Financials (in Million BRL), 2005 & 2006

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