Non Life Insurance Sector to Flourish In Uruguay: Ken Research
Posted on 05 May 2017 by KenResearch Banking Financial Services and Insurance,
Ken Research has announced latest distribution on, “Non-Life Insurance in Uruguay- Key Trends and Opportunities to 2020” which provides a detailed outlook by product category for the Uruguay non-life insurance segment, and a comparison of the Uruguay insurance industry with its regional counterparts.
Uruguay is a Spanish speaking country situated in South America which is well affluent and has an advanced social security, education and democratic institutions.The country faced the economic turmoil of 1970 which it is still trying to overcome but still do have large middle class group and low level of poverty.
The market for the purchase and sale of insurance in Uruguay was controlled by state for the period 1911-93. The state owned insurance bank of state which was the sole entity who was authorized to deal in the local insurance market, which creates a monopoly for all the insurance lines.
FDI means direct investing in the business or production of the company of different country. Uruguay is among the few countries who allow 100% FDI in insurance industry.
From January 1, 2015, new regulations are introduced so as to provide affordable auto insurance to low income motorists. The non-life insurers are expected to cede more premiums, so as to mitigate the losses from natural disasters, which will generate business for reinsurers.
The Non-life insurance segment has shown the tremendous growth in terms of gross written premium in 2015.
The responsibility of accrediting the international risk rating of foreign non-life insurance companies lies with the local insurance company that contracts reinsurance. There are no formal requirements to validate such rating with the insurance regulator.
The non-life insurance sector is expected to ameliorate at an ever growing CAGR year after year with increased awareness amongst the people and their evolving needs for getting insured against risky ventures. Insurance will soon be treated as a tool to curb losses that one has to suffer otherwise.
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