Market Trends of Brazil Life and Non-Life Insurance Industry
Low Penetration of Life and Non-Life Insurance Turns Out to be an Opportunity
The life and non-life insurance market penetration is low in the country. However, there has been slow growth due to the development of life insurance policies. Low penetration of life and non-life insurance in the country is an advantage, as it helps new entrants to grab the opportunity and acquire market share by providing better services compared to other companies and utilizing the competitive advantage.
To meet customer demand, build customer loyalty, and take advantage of the opportunities offered by digital technology, insurance companies are stepping up their efforts in product innovation, largely in the non-life sector. To tackle the rise of connected devices, insurers are investing in this new niche and launching connected insurance solutions in three key areas, namely motor, home, and health.
Smart Phones Helps Insurers to Gather Evidence
More than 70% of the population in Latin America now has access to a smartphone that connects them to the Internet and allows them to gather accurate, real-time data on incidents that can help insurers make claims faster. Most insurers are dealing with inefficient and siloed legacy systems along with the need to adopt digital technologies, particularly in data analytics and robotic process automation (RPA). Emerging market segments, such as small and medium-sized enterprises (SMEs) and class C, D, and E corporations, must also be focused as potential sources of growth.
More customers are adopting digital channels, and as in other nations, they expect more than ever from insurers, as they do from other types of businesses. Product portfolios are also evolving, with combined products and new life and pension products taking on a higher profile. Pay-per-use products have also been approved. There is continuing evolution on the distribution front as well, thanks to the growing professionalization of brokers, the ongoing rise of direct and digital channels, the growing significance of bancassurance and partnerships, and the focus on increasing sales via social media.
