Non-life insurances - South America

South America

The Non-life insurance market in South America is expected to reach a projected market size (gross written premium) of US$130.60bn by 2025.
In that same year, the average spending per capita in the Non-life insurance market is estimated to be US$314.20.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2025-2029) of 1.70%, leading to a market volume of US$139.70bn by 2029.
In comparison to other countries, the United States is forecasted to generate the highest gross written premium in the Non-life insurance market with a value of US$2,591.0bn in 2025.
In Argentina, the non-life insurance market has seen a surge in demand due to increasing awareness of natural disasters.

Market

Region

Region comparison

Currency

Analyst Opinion

The Non-life insurance market in South America is experiencing significant growth and development. Customer preferences in the region are shifting towards more comprehensive insurance coverage, driven by increasing awareness of the importance of protection against various risks. Customers are seeking policies that offer a wide range of coverage options, including property, health, and liability insurance. Trends in the market show a notable increase in demand for non-life insurance products in countries like Brazil and Argentina. This growth can be attributed to rising disposable incomes, urbanization, and regulatory changes that promote insurance penetration. Insurers are also leveraging digital technologies to enhance customer experience and streamline policy management processes. Local special circumstances, such as political and economic stability, play a crucial role in shaping the non-life insurance market in South America. Countries with stable governments and robust regulatory frameworks tend to attract more investments from insurance companies, leading to a more competitive market environment. Additionally, cultural factors and local preferences influence the type of insurance products that are in demand in each country. Underlying macroeconomic factors, such as GDP growth, inflation rates, and interest rates, also impact the development of the non-life insurance market in South America. A growing economy usually translates to higher demand for insurance products, as individuals and businesses seek to protect their assets and mitigate risks. Moreover, low-interest rates may encourage consumers to invest in insurance as a way to secure their financial future.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.