The non-life segment is dominated by motor vehicle insurance (which is compulsory in Argentina and subject to prescribed minimum cover limits), a trend which we expect to continue throughout the five-year forecast period. While auto sales are declining (falling by some 33.8% in the first six months of 2014), the major insurers have pricing power and are able to pass on the impact of high rates of inflation to consumers by generally offering cover on a three, four or six month basis. This allows for regular rates increases and the maintenance of profitability despite the difficult domestic trading conditions.
Worker's compensation insurance (Aseguradoras de Riesgos de Trabajo, ART), providing benefits in the event of death or disability of an employee, is also compulsory in Argentina, and accounts for a large proportion of the non-life segment. Some areas of agriculture insurance, such as crop insurance for farmers who access seasonal crop loans from banks, are also compulsory lines, meaning that there is at least some stability and indeed prospect for growth in the non-life segment.
Life products are far outweighed by non-life products in Argentina, with the market undermined by very high inflation rates and little confidence in long term savings products. This is not to say that there are no prospects for growth. Companies increasingly offer group life insurance products as an...
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 Rankings
BMI's Insurance Business Environment Rankings provide a country-comparative Risk-Reward Rankings index aimed at investors (Life and Non-Life) in the insurance market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Rankings 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's Argentina insurance report examines a range of key market indicators, including the potential for growth in both the life and non-life segments. Limited by a fragile domestic economy, we expect to see very little growth in life products, with high inflation limiting the provision of long-term savings products in particular. Prospects for growth are slightly more positive in the non-life segment, driven primarily by several key compulsory insurance lines. Any growth is dependent upon the renewed confidence of both market operators and customers in the Argentine economy.