Market Trends of Peru Life and Non-life Insurance Industry
This section covers the major market trends shaping the Peru Life & Non-life Insurance Market according to our research experts:
Introduction of Compulsory Life Insurance for Employees
The government of Peru issued Emergency Decree No. 044-2019 to improve measures protecting the health and safety of employees from 2nd January 2020. The new regulation mandates employers to provide employees with compulsory life insurance after four years of service. The insurance policy can be taken out with any insurer. Employers who do not already offer life insurance for new recruits as part of their benefits packages should immediately enroll their new employees in a life insurance policy covering accidental death and total disability. This creates opportunities for many major insurance providerts in Peru to approch companies for providing life insurance directly to the employees. There will be a creation of demand for the insurance sector in Peru.
Insurtech Adoption is a Market Driver
The use of technology in insurance can make products more affordable, business more profitable, and provide access to new risk pools. The insurance companies have been integrating digital technologies into their traditional processes and everyday workflows, in order to reduce manual efforts, time, and costs. The insurance sector participants sometimes use the term more broadly to encompass the application of digital technology to all stages of the insurance supply chain. As the insurance sector in Peru is becoming more sophisticated and it can be expected that digital solutions may filter down through the insurance supply chain, driving operational efficiency, and ultimately profitability, as is already being seen in more advanced markets.
