Reinsurance Sector in Peru to Experience Positive Growth: Ken Research
Posted on 24 January 2017 by KenResearch Banking Financial Services and Insurance,
Ken Research has announced its distribution on, “Reinsurance in Peru, Key Trends and Opportunities to 2020” which provides a detailed study of the market trends, drivers and challenges in the Peruvian reinsurance segment. The report includes values for the key performance indicators such as written premium, reinsurance ceded and reinsurance accepted during the review period and forecast period.
It presents an in-depth market analysis, information and insights into the Peruvian reinsurance segment and a complete outline of the Peruvian economy and demographics.
It examines various natural and man-made hazards and their impact on the Peruvian insurance industry for a better comprehension of the segment that majorly involves processes involved in reassuring.
Growth opportunities and market dynamics in key product categories are ascertained that further enables the reinsurers to identify segment dynamics and competitive advantages, and acquire the profiles of reinsurers operating in the country.
It provides detailed information on the competitive landscape in the country that aids a user in structuring optimum plan with proper adherence to the strengths, weaknesses, opportunities and threats.
The written premium of the Peruvian reinsurance segment grew in earlier years as a result of Peru's robust economic development and healthy growth in the insurance industry.
As a consequence of happening of the natural disasters, such as the earthquake with a magnitude of 8.0 in 2007 and floods in subsequent years, the insurance companies shared a better proportion of revenues with the reinsurance companies to split larger risk for avoiding losses from the unforeseen natural disaster events.
The Peruvian government, in collaboration with regulatory body Superintendencia de Banca y Seguros (SBS), took numerous actions to ameliorate the effectiveness and efficiency of the country's insurance industry which led to non-life segment accounting for highest premium ceded in 2015, with 41.3% of the non-life segment's total. Arthur J Gallagher and Grupo CP were able to fulfill the acquisition of majority shareholdings in Peruvian reinsurance broker JAO & Partners in 2014.
Peruvian insurers divide the risk with reinsurers in order to circumvent losses due to natural disasters. Under Article 10 of Law, foreign reinsurance companies may write reinsurance business without registering with SBS given that they hold ratings of BBB- by S&P, Baa3 by Fitch, BBB- by Moody's or B+ by AM Best. By year 2020, the market is expected to be well developed and continue to grow.
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