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Brazilian insurance market: Growth potential

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Learn more about the Brazilian insurance market, which is hosting FIDES Rio 2023

Brazil – the host of the next meeting of the Inter-American Federation of Insurance Companies (FIDES), the 38th Western Hemisphere Insurance Conference (FIDES Rio 2023) – is one of the most prominent insurance markets in Latin America. In 2022, the country accounted for 41% of the region’s insurance revenue and it ranked 17th in the global insurance market. Insurance premiums were R$619.3 billion, equivalent to 6.3% of Brazil’s GDP, while claims amounted to R$452.1 billion. Last year, revenues increased 11.8%.

The Brazilian insurance market has 129 active groups and 933 health or dental insurers, employing 182,700 people directly. The sector is also one of the largest institutional investors in the country, with an investment portfolio worth around R$1.8 trillion, equivalent to 25% of the public debt.

Growth potential

Even so, the Brazilian insurance market is considered relatively small in relation to the size of the economy and so it has huge growth potential. In prominent segments such as auto, the coverage rate does not exceed 30%. In short, there is scope for growth in all types of insurance.

The latest projection by the National Confederation of Insurers (CNseg) indicates that the Brazilian insurance market will grow again in the double digits in 2023. The most recent estimate is for growth of 11.1%, up from the previous projection of 10.9% (not including mandatory vehicle insurance and health insurance).

Casualty insurance (not including mandatory vehicle insurance) is forecast to grow 18.1% this year. (In 2022, the premiums in this segment amounted to R$113.26 billion.) Two areas stand out: auto, which is expected to grow 23.3%; and agricultural, which is projected to grow 20.1%. According to CNseg, personal insurance, which posted revenue of R$214.28 billion in 2022, is expected to grow 8.2% this year, while the lottery bond segment, which earned R$28.39 billion of revenue last year, is projected to grow 5.2%.



Target is for revenue to reach 10% of GDP

The Brazilian insurance market plans to become even more attractive by 2030. The Insurance Market Development Plan, drawn up by CNseg, FenSeg (which represents casualty insurers), FenaPrevi (pensions and life), FenaSaúde (health), FenaCap (lottery bonds) and Fenacor (insurance brokers), as well as the sector’s companies, presents the target of insurance premiums reaching 10% of Brazil’s GDP within eight years.

This bold target will require rapid growth in all four segments of the insurance market (all lines of insurance, including benefits, as well as lottery bonds).

Each segment will have to do its part in efforts to reach more than 10% of GDP. Assuming that all the variables listed in the Insurance Market Development Plan perform well (including GDP, reasonable levels of inflation and interest rates, and structural reforms), personal insurance (accumulation and risks) will reach 4.1% of GDP in 2030, while general insurance will represent 2.1%, lottery bonds will be equivalent to 0.5% and health insurance will be equivalent to 3.4%.

Four pillars of solutions

The Insurance Market Development Plan identifies some obstacles to insurance market growth and proposes specific or generic solutions for all four segments. The four pillars of the plan – Insurance’s Image, Insurance Distribution, Products and Regulatory Efficiency – seek to solve challenges such as people’s low awareness of comprehensive insurance guarantees, regulatory costs that make products more expensive and difficulties in expanding demand among the poorest people, due to insufficient income and lack of appropriate products.

Among the proposed solutions, the following stand out: increasing the visibility of insurance activities, demystifying the idea that insurance is expensive, simplifying insurance operations as much as possible, and making the industry’s technical jargon more understandable to the general public.

The plan also emphasizes the role of the insurance market when it comes to environmental, social and governance (ESG) issues, demonstrating the sector’s commitment to the sustainability agenda.

As one of Brazil’s largest institutional investors, the insurance industry can shape sustainable growth by selecting the investments that make up its technical reserves. In addition, by underwriting risks, the sector is able to penalize polluting activities or even abandon them, while promoting decarbonization initiatives.

 About CNseg

The National Confederation of General Insurance, Pension, Life Insurance, Health Insurance and Lottery Bond Companies (CNseg) represents the sector’s companies in Brazil, which belong to four federations (FenSeg, FenaPrevi, FenaSaúde and FenaCap). CNseg’s core mission is to provide services that improve people’s lives and promote business activities, allowing the Brazilian economy to grow. Check out the latest news about our work on our website and on FacebookLinkedInInstagram and YouTube. You can also sign up to receive our news via WhatsApp.


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