In the non-life segment, both RSA and Australia's QBE have made acquisitions in the recent past that have given them leadership positions. Overall, we would not be surprised if the process of consolidation continued through 2014. Meanwhile, many of the leading local groups continue to benefit from their associations with government-backed financial institutions, from the support of policy-holders who see their own interests as being closely aligned with mutual insurers, and/or strong brand names.
In both of the major segments, premiums have in the recent past been distorted by the high inflation in Argentina (officially 10-11% through 2013 but widely recognised as being between two and three times as high). However, it appears that many of the companies in the non-life segment have pricing power. Partly for this reason, they have been...
The Argentina Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Argentina Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Argentinian insurance industry.Key Benefits
CoverageBMI Industry View
- Benchmark BMI's independent insurance industry forecasts for Argentina to test other views - a key input for successful budgeting and strategic business planning in Argentina's insurance market.
- Target business opportunities and risks in Argentina through our reviews of latest industry trends, regulatory changes and major deals, investments and macroeconomic developments.
- Exploit latest competitive intelligence on your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
Summary of BMI's key industry forecasts and views, covering the Life and Non-Life segments, the evolving competitive landscape and business operational risks.Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the insurance sector and within the broader political, economic and business environment.Regional Outlook
Individual analysis of both Life and Non-Life insurance sector developments and prospects across developed states and emerging markets - supported by BMI's global industry growth forecasts. This is followed by an in-depth evaluation of region- and country-specific trends, focusing on BMI's country-by-country market growth data.Business Environment Ratings
BMI's Insurance Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (Life and Non-Life) in the insurance market.
The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.BMI Industry Forecasts
Historic data series (2008-2012) and forecasts to end-2018 for key industry and economic indicators (see list below) supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
Premiums: Total (US$mn), growth (% y-o-y), penetration (% of GDP), density (US$ per capita) for Life and Non-Life sectors, and total premiums.
Life: Data on gross written premiums for all major non-life segments (e.g. motor, fire, work).
Non-life: Data on gross written premiums for all major life segments (e.g. life, retirement).
Economic: Nominal GDP (US$bn), real GDP growth (%), GDP per capita (US$), population (mn), unemployment (%), exchange rate (against US$).Competitive Landscape & Rankings
Illustration of the insurance industry via rankings tables comparing gross written premiums by company (US$mn) and market share (%). This chapter also includes in-depth regional analysis of the market position, business strategies and investment potential of the leading insurance companies.Company Profiles
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
BMI View: As of mid-2014, the latest data published by the Superintendencia de Seguros de la Nación (SSN - the regulator) highlights the resilience of premiums in both the non-life and the life segments. In the non-life segment, the insurers are helped by the (near) compulsory nature of major lines such as motor vehicle insurance, employee's compensation (ART) and, for farmers, agricultural related lines. The structurally high inflation also makes it easier for the insurers to pass on cost increases to customers. In the life segment, group life cover (including protection and other benefits) is widely seen by major corporates as an (inflation-protected) incentive with which they can attract and retain key staff. In both segments, the leading companies clearly have financial strength and, for varying reasons, tolerance of the consistently challenging business environment. Nevertheless, a number of companies have reconsidered their commitment to Argentina and have found ready buyers for some or all of their insurance operations in the country. We think that the process of consolidation will continue through the forecast period.