Improving the presence in cities of the province and taking advantage of the margin of growth that still exists in the metropolitan area are the keys for the sector to grow during the following years.
According to figures presented by the Guatemalan Association of Insurance Institutions (AGIS), between 2017 and 2018 the number of premiums subscribed in the country went from $881 million to $907 million, which is equivalent to a 3% increase.
Between 2017 and 2018, the number of people insured against accidents and diseases grew 17%, from 1.6 million to 1.9 million.
According to figures from the Quarterly Bulletin of Financial Inclusion Indicators, December 2018, compiled by the Superintendence of Banks, since 2016 there has been a sustained increase in the number of insured persons.
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
Fitch Ratings forecasts that the insurance sector in Central America will close 2018 with a year-on-year increase of almost 6% and expects that in 2019 the business will reach a very similar growth rate.
The projected increase for 2018 and 2019 would be based on the behavior of the Panama, Costa Rica and Guatemala markets, however, the increases of 5.8% and 6.1% forecast for 2018 and 2019, respectively, would represent a slowdown regarding the 8.2% growth registered in 2017.
The Guatemalan Workers' Recreation Institute tenders fire, allied and collateral lines insurance for buildings and facilities owned by the institution.
Guatemala Government Purchase 9203206:
"All risks arising from any external cause will be covered, including, but not limited to earthquake, tremor, volcanic eruption, falling ash and/or volcanic sand and consecutive fire, explosion, lightning, malicious damage, hurricane, typhoon, tornado, flood and water damage, riot, strikes, riots at work or popular, falling aircraft and objects, collision of land vehicles, collapse of stowage, winds, hail, floods, tsunamis, aircraft crashes, special malicious damage (terrorism) explosion and implosion of boilers, machinery breakage, electrical damage, electronic equipment, short circuit, excess voltage, voltaic arcs and any other alteration of the electricity, theft and/or robbery, theft, pillage, confrontation, and any other sublimit that is part of the policy and other extensions of coverage of all risk.
The Ministry of Communications in Guatemala is putting out to tender insurance policy for vehicles, fixed constructions, electronic equipment, machinery and civil liability of the institution.
Guatemala Government Purchase 7715919:
"The validity of the policies begins from January 2, 2019 at 0:00 hours and will end on December 31 of the year 2019 at 0:00 hours.
The Judicial Branch of Guatemala is putting out to tender a medical expenses insurance policy for 156 magistrates of the Supreme Court of Justice and Courts of Appeals.
Guatemala Government Purchase 7710356:
"The request is for a contract for a medical expenses insurance policy for 156 judges and magistrates at the Supreme Court of Justice, Court of Appeals, tribunals and support courts of the same categorythat have been appointed.
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."
Projections are that this year growth of the Central American insurance sector will be driven by activities in the markets of Costa Rica and Guatemala.
From the report "Prospects 2018: Insurance Sector in Central America" by Fitch Ratings:
Stable Rating Perspective:The rating outlook for the Central Americaninsurancesectoris stable for 2018, given that most of the rated companies maintain a stable outlook on an individual basis.Fitch Ratings believes that the sector shows stable fundamentals, as a result of good profitability levels and high liquidity and capitalization indicators in all countries, which it expects to continue to be reflected in solid balance sheets in companies.
The Guatemalan insurance association reports that at the end of the year premiums totaled $926 million, 8% more than in 2016.
According to a report presented by the Guatemalan Association of Insurance Institutions, the growth of 7.7% was below the 9% that had been foreseen for 2017.It should be noted that medical insurance exceeded expectations, growing above 10%.
The insurers' association has reported a 9% increase in premiums generated in September this year.
Enrique Murillo, executive director of the Guatemalan Association of Insurance Institutions (AGIS), told Elperiodico.com.gt that"... the total premiums generated in September 2017 is $708 million, while up to the same month last year the figure was $640 million."
In Guatemala, Crédito Hipotecario Nacional has been granted an annual contract for an insurance policy for the vehicles belonging to the National Civil Police Department.
The value of the contract awarded is $4.5 million (34.245 billion quetzales), and it includes coverage of the vehicles belonging to the National Civil Police Department.
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.
According to Fitch Ratings growth in the insurance sector in Central America in 2017 will be driven by the markets of Costa Rica and Nicaragua.
From the report "Outlook 2017: Insurance in Central America" by Fitch Ratings:
Rating Outlook Stable:Fitch Ratings´outlook for insurance ratings in Central America is stable. The agency believes that there is a limited probability of rating adjustments in the next 12 to 18 months, which could lead to significant changes in the risk profile or the weighted support in some cases.