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Peru Life and Non-life Insurance Market Size (2024 - 2029)

The Peru insurance industry has experienced a significant shift in its market size due to the adverse effects of the COVID-19 pandemic, which led to a contraction in revenues and impacted premiums. The pandemic's impact on the economy, particularly on small to medium-sized enterprises and public finances, contributed to this decline. Despite these challenges, the insurance market in Peru remains one of the largest in South America, with life insurance products playing a crucial role in underwriting performance. The market's ability to generate positive results continues to depend heavily on investment income, especially given the declines in technical results and financial income.

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Market Size of Peru Life and Non-life Insurance Industry

Peru Life and Non-Life Insurance market
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.50 %
Market Concentration Medium

Major Players

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*Disclaimer: Major Players sorted in no particular order

Peru Life & Non-life Insurance Market Analysis

The Peru insurance industry has been undoubtedly impacted by the coronavirus (COVID-19) pandemic. The Peru's insurance industry went to negative from stable, citing the negative impact of COVID-19 on revenues, along with a significant amount of early withdrawals from the country's Private Pension Fund system and its negative effect on premiums.

As of 2020, Peru's Insurance market is the 7th largest in South America. Within the economies of South America, the insurance market contracted 0.7% in 2020 (-2.4% in real terms). This was mainly because of the pandemic that worsened the living conditions in the region, and has particularly affected small to medium-size enterprises (SME), job creation and public finances. In 2018, insurance premiums written in Peru accounted for 1.7 percent of the country's GDP, up from a share of 1.6 percent reported in the previous years. That same year, insurance premiums amounted to over 14 billion U.S. dollars in the South American country. Higher benefits paid from the life insurance segment greatly influenced the overall underwriting performance. Declines in technical results and financial income led to a contraction of 28.8% in net income and a return on assets of 1.9%, the lowest in five years. Given the importance of life insurance products, operating performance will continue to rely on investment income to generate positive results.

Peru Life & Non-life Insurance Industry Segmentation

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools client risk to make payments more affordable for the insured. The Peru Life and Non-Life Insurance Market is segmented by Insurance Type (Life Insurance(Individual, Group), Non-Life Insurance(Fire, Motor, Marine, Health and Others)), and Distribution Channel (Direct, Agency, Banks, and Other Distribution Channels).

By Insurance Type
Life insurance
Individual
Group
Non-Life Insurance
Fire
Motor
Marine
Health
Others
By Distribution Channel
Direct
Agency
Banks
Other Distribution Channels
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Peru Life and Non-life Insurance Market Size Summary

The insurance industry in Peru has experienced significant challenges due to the COVID-19 pandemic, which shifted the market from a stable to a negative outlook. This shift was primarily driven by reduced revenues and early withdrawals from the Private Pension Fund system, adversely affecting premiums. Despite these challenges, Peru's insurance market remains the seventh largest in South America. The pandemic exacerbated existing economic difficulties, particularly impacting small to medium-sized enterprises, job creation, and public finances. The life insurance segment, despite its challenges, continues to play a crucial role in the market's underwriting performance, with a reliance on investment income to achieve positive results. Regulatory changes, such as the Emergency Decree No. 044-2019, have created new opportunities for insurance providers by mandating compulsory life insurance for employees, thereby increasing demand in the sector.

The integration of digital technologies into the insurance sector is transforming traditional processes, enhancing operational efficiency, and driving profitability. This technological advancement is enabling insurance companies in Peru to reduce manual efforts and costs, while also expanding their market presence. The market is moderately consolidated, with major players like Rimac, Pacifico Seguros, and La Positiva dominating. However, mid-size and smaller companies are gaining traction through technological innovation and new market contracts. Notable developments include Rimac Seguros' partnership with Kyndryl to enhance its digital infrastructure and FID Peru SA's acquisition of a majority stake in La Positiva Seguros y Reaseguros SA, highlighting ongoing consolidation and digital transformation efforts within the industry.

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Peru Life and Non-life Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Insights into Latest Technologies Used in the Industry

    5. 1.5 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitutes

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Insurance Type

      1. 2.1.1 Life insurance

        1. 2.1.1.1 Individual

        2. 2.1.1.2 Group

      2. 2.1.2 Non-Life Insurance

        1. 2.1.2.1 Fire

        2. 2.1.2.2 Motor

        3. 2.1.2.3 Marine

        4. 2.1.2.4 Health

        5. 2.1.2.5 Others

    2. 2.2 By Distribution Channel

      1. 2.2.1 Direct

      2. 2.2.2 Agency

      3. 2.2.3 Banks

      4. 2.2.4 Other Distribution Channels

Peru Life and Non-life Insurance Market Size FAQs

The Peru Life and Non-life Insurance Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Rimac, Pacifico Seguros, La Positiva, Mapfre Peru and Interseguro are the major companies operating in the Peru Life and Non-life Insurance Market.

Peru Life & Non-life Insurance Market Report Snapshots

Peru Life & Non-life Insurance Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)