Latin America’s Credit and Surety Insurance Market Grows
Latin America’s credit and surety insurance market is nearing US$2.5bn annually according to Spanish credit insurance and risk management company Credito y Caucion, which based it on figures by the Pan-American Surety Association (PASA).
The figure is expected to double by the end of 2015, by which time the region will be approaching US market levels according to the association. The US credit and surety insurance market currently totals approximately US$5bn per year.
Founded in 1972 PASA currently has members from 35 countries, while Credito y Caucion operates Dutch-based credit insurer Atradius in Brazil, Portugal and Spain.
Separately, the president of Mexico’s Comisión Nacional de Seguros y Fianzas (CNSF), Manuel Aguilera, forecast that reforms and economic expansion would fuel around 5% annual growth in the country’s insurance industry and almost triple penetration by 2030.
“Labour, energy, tax and telecommunications reforms aimed at economic growth will help [insurance] sector growth increase in the next few years,” Aguilera was quoted as saying in a report by local newspaper
Aguilera added that rapid economic growth would determine the Mexican insurance industry’s development. In 2000 Mexico had an insurance penetration level equal to 1.3% of gross domestic product (GDP) and 2% of GDP penetration level in 2012. “By 2030 insurance industry penetration could reach as high as 5.6% of GDP,” he predicted.