Due to confinement, the economic crisis and vehicle restriction measures, two out of ten customers in Guatemala cancelled their car insurance.
The spread of covid-19 has generated a health and economic crisis in the country, a situation that caused falls in the income of insurance companies, however, the sector's union considers that it is a temporary effect and that in the coming months sales could recover.
Customers who are guided by immediacy and technology, who are also more focused on travel than buying health or life insurance, force insurers to reinvent their processes to continue increasing their sales.
Because the population group known as the "millennials," which is made up of customers who like to keep up with the buying process and are not willing to wait, companies must transform to keep up with their sales pace.
During 2018, Guatemala's insurance sector increased 3% year-on-year, well below the 8% growth rate reported between 2016 and 2017.
According to figures presented by the Guatemalan Association of Insurance Institutions (AGIS), between 2017 and 2018 the total of premiums subscribed in the country went from $881 million to $907 million.
According to the association of insurers, the increase in the sector's income is partly because of the dynamism registered in the life and medical i
Explained by the behavior of the Costa Rican market, in 2017 Central American insurers received $5.02 billion in premiums, 7% more than in 2016.
According to a report drawn up by Revista Desempeño Asegurador, in 2017 "... insurance sales in the region expressed an absolute increase of US $334.7 million, an amount that represented a rise of 7.1% compared to sales in 2016."
Ficohsa Group has announced the acquisition of 100% of the capital of the company Seguros Alianza, which will be operated through the subsidiary Ficohsa Seguros.
The formalization of the transaction was recently approved by the Superintendency of Banks of Guatemala and the Superintendency of Panama.
Panama stands out as the country with the highest penetration rate in the region, and at the other end is Honduras, with the lowest rate, and below the average in Latin America.
From a report by MAPFRE: "Trends of growth in insurance markets in Latin America":
Guatemala
The insurance market penetration rate in Guatemala stood at 1.23% in 2015, showing a stable trend over the analyzed period,graduallymoving awayfrom the average for the region. The deepening index, meanwhile, stood at 19.7%, with a tendency toward gradual improvement, but still below the average for the Latin American markets.
The segment of medical expenses policies registered the largest increase, up 26% over the previous year.
The Guatemalan Association of Insurance Institutions (AGIS) is looking to give greater impetus to reinsurance this year, as currently only one third of the total premiums are ceded to reinsurers.
Salvador Leiva, president of the AGIS told Elperiodico.com.gt that "...
Fitch Ratings expects moderate growth in premiums in Costa Rica, increased interest in personal insurance in Guatemala, and stable performance in Nicaragua and Honduras.
From the report "Outlook 2015: Central American Insurance Sector":
Costa Rica:
Moderate growth in premiums
Since the Costa Rican insurance industry opened up to private competition in 2008, the market has experienced rapid and consistent growth in premiums.
The sector's share in GDP is only 1.2 %, whereas in El Salvador and Costa Rica it amounts to 2.1% and 2% respectively.
The insurance market in Guatemala has a lot of potential for growth. The share of this sector in the Gross Domestic Product (GDP) is 1.2 %, as opposed to El Salvador and Costa Rica where it is 2.1 % and 2% respectively.
Hermann Girón, president of the Guatemalan Association of Insurance Institutions (AGIS) explained that it is "interesting to see these figures because when you make a comparison of these numbers with the amount of people who could buy insurance, you can see that the market is big."
Their suggestion is to facilitate the acquisition of insurance policies by simplifying the current insurance contract forms required by the Tax Administration.
Insurance companies made these and other proposals during the XXXIV Hemispheric Insurance Conference which is taking place in Antigua Guatemala.
"One of the proposals is to simplify the Special Inspectorate (IVE) Tax Authority forms which aim to prevent money laundering," noted an article in Prensalibre.com.
From 10 to November 13 representatives from insurance companies will gather together in Guatemala to address topics of interest to the industry.
Among the topics to be discussed at the event being held in Antigua, Guatemala, are the new trends and recent innovations in the insurance industry. The event, held bi-annually since 1946, facilitates relationships between insurers and reinsurers.
During the first eight months of 2013 insurance market premiums generated $425 million, while in the same period of 2012 the figure was $396 million.
The data was supplied by the Guatemalan Association of Insurance Institutions (Agis), which states that 20% of the market is made up of premiums from life policies, 29% for accident and health and the remaining 51% belongs to damage.
Insurers in the country are extending their range of products with services such as coverage for vehicles over 20 years old, accidental death, unemployment and others.
According to Christian Wolck, manager of the insurance division of G & T, there is a tendency to open up the market to all kinds of people, "because so far companies have been very efficient in providing solutions to businesses, but today we have to focus on people. "
"For the sector's improvement, it will be key to adjust fees for products with high accident rates, as well as more careful subscription"
By the end of June 2009, net premiums had grown at an inflation adjusted rate of 9.8%, although lower growth should be expected for the end of the year, due to worse economic performance. Growth in individual insurance was remarkable (14% average), specially in collective life and accident and health, while general damage insurance saw a 7% increase.