Mexico Insurance Market Intelligence: 2011 Edition
Mexico is the second largest insurance market in Latin America after Brazil at the end of 2009. At the end of 2009, both life and non-life insurance segments witnessed a significant rise in premiums. Many segments under non-life insurance sector experienced a real annual increase in direct premiums as compared to 2008 such as fire, earthquake, Liability, Maritime and Transport, Credit, and agricultural. In addition the premiums rose due to multi-annual renewal of the comprehensive insurance policy of Pemex, state Oil Company, held in February 2009. In life segment, both individual and group insurance policies as well as pension insurance witnessed a rise in premiums.
Low insurance penetration rate in Mexico as compared to other Latin American nations represents a huge potential market for several small, niche insurance products, such as education, transportation and natural hazard products, which offer substantial opportunities. The Mexican insurance market further got concentrated at the end of 2009 with five largest insurers accounting for almost half of market share in terms of direct premiums. Met Life remained the market leader in life insurance segment whereas AXA Seguros was the leader in the non-life insurance sector.
Mexican economy underwent two different phases throughout the year 2009. After contracting in H109, gradual improvement of external conditions and higher levels of industrial activity in the US led to a rebound in the Mexican economy in H209. The federal government implemented a series of measures designed to reduce the impact of the international crisis on production and employment. A large portion of Mexican population is uninsured depicting enormous opportunity for insurance companies. Life insurance premiums will be driven by demand of annuities and pension funds as they are viewed as an attractive savings option.
Low insurance penetration rate in Mexico as compared to other Latin American nations represents a huge potential market for several small, niche insurance products, such as education, transportation and natural hazard products, which offer substantial opportunities. The Mexican insurance market further got concentrated at the end of 2009 with five largest insurers accounting for almost half of market share in terms of direct premiums. Met Life remained the market leader in life insurance segment whereas AXA Seguros was the leader in the non-life insurance sector.
Mexican economy underwent two different phases throughout the year 2009. After contracting in H109, gradual improvement of external conditions and higher levels of industrial activity in the US led to a rebound in the Mexican economy in H209. The federal government implemented a series of measures designed to reduce the impact of the international crisis on production and employment. A large portion of Mexican population is uninsured depicting enormous opportunity for insurance companies. Life insurance premiums will be driven by demand of annuities and pension funds as they are viewed as an attractive savings option.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Supervision of insurance sector by Ministry of Finance and Public Credit and CNSF
1.1.2 Well developed Banccassurance services
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Significant rise in both life and non-life insurance premiums in 2009
1.2.1.2 Rise in total profitability of insurance industry in 2009
1.2.1.3 Lesser claims and losses resulted in decrease in combined ratio
1.2.2 Market Segments
1.2.2.1 Contract with oil company, Pemex led to rise in non-life insurance premiums in 2009
1.2.2.2 Fall in vehicle sales affected automobile insurance
1.2.2.3 Pension insurance witnessed an annual rise
1.2.2.4 Tax benefits and development of bancassurance led to rise in demand for life insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Low insurance density as compared to other Latin American countries
1.2.3.2 Huge Potential in Niche Insurance Segments
1.2.4 Market Share
1.2.4.1 Further concentration of insurance market by 2.4 percentage points in 2009
1.2.4.2 MetLife Playing as the Biggest Insurer
1.2.4.3 AXA Seguro remained the market player in non-life insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Mandatory Auto Accident Insurance (SOAT) For Federal Highways
Solvency Rules to Trigger Consolidation of Insurance Companies
Free Health Insurance for Tourists
CNSF Announced Approvals of Foreign Reinsurers
Wesco Approved As Reinsurer
Ixe Entered Insurance Market through RSA Distribution Agreement
Catex Signed New Mexican Reinsurance Broker
2.2 Market Drivers
Resilient Economy
Growing Minimum Wages
Demand for Health Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Positive outlook of Mexican economy in future years boosting insurance premiums growth
4.2 Uninsured population depicting huge opportunity for insurance companies
4.3 Pension and Annuity Market Driving the Growth of Life Insurance Sector
1.1 Industry Structure
1.1.1 Supervision of insurance sector by Ministry of Finance and Public Credit and CNSF
1.1.2 Well developed Banccassurance services
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 Significant rise in both life and non-life insurance premiums in 2009
1.2.1.2 Rise in total profitability of insurance industry in 2009
1.2.1.3 Lesser claims and losses resulted in decrease in combined ratio
1.2.2 Market Segments
1.2.2.1 Contract with oil company, Pemex led to rise in non-life insurance premiums in 2009
1.2.2.2 Fall in vehicle sales affected automobile insurance
1.2.2.3 Pension insurance witnessed an annual rise
1.2.2.4 Tax benefits and development of bancassurance led to rise in demand for life insurance policies
1.2.3 Market Density & Penetration
1.2.3.1 Low insurance density as compared to other Latin American countries
1.2.3.2 Huge Potential in Niche Insurance Segments
1.2.4 Market Share
1.2.4.1 Further concentration of insurance market by 2.4 percentage points in 2009
1.2.4.2 MetLife Playing as the Biggest Insurer
1.2.4.3 AXA Seguro remained the market player in non-life insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Mandatory Auto Accident Insurance (SOAT) For Federal Highways
Solvency Rules to Trigger Consolidation of Insurance Companies
Free Health Insurance for Tourists
CNSF Announced Approvals of Foreign Reinsurers
Wesco Approved As Reinsurer
Ixe Entered Insurance Market through RSA Distribution Agreement
Catex Signed New Mexican Reinsurance Broker
2.2 Market Drivers
Resilient Economy
Growing Minimum Wages
Demand for Health Insurance
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Positive outlook of Mexican economy in future years boosting insurance premiums growth
4.2 Uninsured population depicting huge opportunity for insurance companies
4.3 Pension and Annuity Market Driving the Growth of Life Insurance Sector
LIST OF CHARTS:
Annual Premium – Mexico Insurance Industry (2002-2009)
Mexico: Gross Direct Premium Q110 Vs. Q109
Mexico Combined Ratio for General Insurance Industry 2009
Mexico Insurance Premium Share (%) by Segment – 2009
Mexico Insurance Premium by Segment – 2002-2009
Mexico Life Insurance Premium Share (%) by Segment – 2009
Mexico Non-Life Insurance Premium Share (%) by Segment – 2009
Mexico Insurance Density (US$): 2002 – 2009
Mexico Insurance Penetration: 2002 – 2009
Mexico: Five Major Insurer’s Market Share (2009)
Mexico: Major Life Insurer’s Market Share: (2009)
Major Non-Life Insurer’s Market Mexico: 2002 – 2009
Mexico: Minimum Wages per Day (2002-2009)
Mexico Population Aged 65 & More: 2002 – 2009
Uninsured Population in Mexico (2002-2009)
Forecast: Mexico Insurance Industry: 2009A - 2013F
Forecast: Mexico Life & Non-Life Insurance Industry: 2009A - 2013F
Annual Premium – Mexico Insurance Industry (2002-2009)
Mexico: Gross Direct Premium Q110 Vs. Q109
Mexico Combined Ratio for General Insurance Industry 2009
Mexico Insurance Premium Share (%) by Segment – 2009
Mexico Insurance Premium by Segment – 2002-2009
Mexico Life Insurance Premium Share (%) by Segment – 2009
Mexico Non-Life Insurance Premium Share (%) by Segment – 2009
Mexico Insurance Density (US$): 2002 – 2009
Mexico Insurance Penetration: 2002 – 2009
Mexico: Five Major Insurer’s Market Share (2009)
Mexico: Major Life Insurer’s Market Share: (2009)
Major Non-Life Insurer’s Market Mexico: 2002 – 2009
Mexico: Minimum Wages per Day (2002-2009)
Mexico Population Aged 65 & More: 2002 – 2009
Uninsured Population in Mexico (2002-2009)
Forecast: Mexico Insurance Industry: 2009A - 2013F
Forecast: Mexico Life & Non-Life Insurance Industry: 2009A - 2013F
LIST OF TABLES:
Key Macroeconomic Indicators: (2009 – 2014F)
Key Macroeconomic Indicators: (2009 – 2014F)
