How does the Mexican Insurance market work?

Transcription

1 How does the Mexican Insurance market work? Javier Rodríguez Gómez Re- + Insurance Consultant September 28th,

2 Mexico: Demography and Economy Mexico s population is 122 million inhabitants, in a territory of around 2 0 Mio of sq. km. Source: INEGI 2

3 Mexico: Demography and Economy Evidently, the income distribution has been a big problem. In 2010, 62% of mexican families (Income Group D+, D and E) had an Income up to USD 892/month. Five years after, due to a recent 25% devaluation, the USD income of the whole population is smaller. Source: AMAI / NIELSEN

4 Mexican Insurance Market Composition Associated 88 Companies Domestic 29 Foreign 59 Specialized 58 Multi-line 30 Motor 41 Life 47 Personal Accidents 42 P & C 49 Pensions 9 Health 14 There are 105 companies, from which 88 are associated under AMIS (Asociación Mexicana de Instituciones de Seguros). The regulatory changes as from 1994 (incl. NAFTA) eliminated all operation barriers for foreign investment. As a result now a days there are 59 foreign insurers with a branch operating in Mexico. Source: AMIS 4

5 Mexican Insurance Market Composition % 80% 65 % 35 % Domestic Foreign Total Premium 2014: USD 26,2 Billion Domestic Companies 35% Foreign Companies 65% Source: AMIS 5

6 Market Share 2014 Source: AMIS 6

7 Premium and Claims 2014 (Non Life w/o Motor) Source: AMIS 7

8 Premium and Claims 2014 (Engineering) Source: AMIS 8

9 Mexico, Brazil & LA: 2011 Written premium / Branch. 80% 70% 69% 60% 53% 58% 50% 47% 40% 30% 37% 31% 24% 26% 36% 40% 20% 17% 15% 15% 10% 0% Vida Fianzas y Crédito Daños sin Autos Salud Autos Accidentes Pensiones y Accid. Trab. 9% 3% 0% SOAT México Brasil Source: Fundación Mapfre, El Mercado Asegurador Latinoamericano, , Instituto de Ciencias del Seguro, December

10 Insurance Market Penetration (Premium / GDP) As from 2002 the Market Penetration has steadily grown up, but.. until 2014 the market has finally reached 2.05% (USD 26.2 Bio) Source: FinanciAmis 10

11 Insurance Market Penetration (Premium / GDP) Mexico is the 15 th largest economy worldwide, but is 58 th place in terms of insurance market penetration. Mexico has a lower penetration than the Latin America region as a whole. Source: Sigma, Swiss Re. World Insurance

12 Insurance Market Penetration (Premium / GDP) 8% 7% 6% 7% Mexico has a lower penetration than the Latin America region as a whole. 5% 4% 3% 4% 4% 4% 3% 3% 3% 2% 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 1% 0% PR CHI ARG BRA VEN PAN REG COL ECU SAL URU CR MEX HON PER NIC PAR BOL DOM GUA Source: Latinoinsurance 12

13 Non Life (w/o Motor) It is estimated an increase in MEX PESOS for 2015, but. the recent devaluation will reduce the USD Premium in 8.47% Premium Millions of dollars Source: AMIS 13

14 Engineering vs Non Life (w/o Motor) Premium Source: AMIS Engineering Non Life (w/o Motors) 14

15 Non Life (w/o Motor) H. Wilma Claims H. Odile H. Dean Tabasco Flood H. Alex H. Karl Mexicali EQ TS Manuel TS Ingrid Millions of dollars Source: AMIS 15

16 Engineering vs Non Life (w/o Motor).... Millions of dollars H. Wilma Claims H. Dean Tabasco Flood H. Alex H. Karl Mexicali EQ TS Manuel TS Ingrid H. Odile Source: AMIS Engineering Non Life (w/o Motors) 16

17 Insurance Market Development 17

18 Insurance Industry Structure Direct Premiums Market has grown almost every year during the last decade. Source: EstadiscAMIS 18

19 Insurance Industry Structure Market Participation However, market composition by line of business has not suffered major changes. Source: EstadiscAMIS 19

20 Evolution of technical reserves in the Mexican Market MILLIONS OF DOLLARS , Unearned Premium IBNR reserve Prevision reserves Source: AMIS 20

21 Market Combined Ratio 21

22 Overall Combined Ratio 100, PREMIUM 75,00 50,00 25,00 0, Coverage Claims costs Administrative costs Source: AMIS 22

23 Retention Combined Ratio (w/o Life) XL Cost Claims costs Administrative costs Source: AMIS 23

24 Retention Combined Ratio (Non Life w/o Motor) XL Retained Claims Costs Administrative Costs Source: AMIS 24

25 Retention Combined Ratio (Engineering) XL Retained Claims Costs Administrative Costs Source: AMIS 25

26 Reinsurance 26

27 Non Life Insurance Premiums Current figures Ceded Premium Retained Premium Written Premium Millions of pesos Source: FinanciAMIS (IV quarter figures ) 27

28 Non Life (Premium and Claims, w/o Motor) Written Premium Ceded Premium Retained Premium Ceded Claim Retained Claim Direct Claim Source: AMIS 28

29 Non Life Ceded Premiums (w/o Motor) Agro Credit Miscelaneous Fire Marine Liability CAT Millions of pesos Source: FinanciAMIS (IV Quarter figures ) 29

30 attention your for Thank You 30