Latin America is the region of the world where the insurance industry is growing most strongly. According to a study by the consulting firm McKinsey, the compound annual growth rate of insurance in Latin America was 2.5% between 2020 and 2022, compared to 1.5% growth in the United States and 0.5% in Europe. In Asia Pacific, meanwhile, it declined by 1.5%.

Relative advances in the banking penetration of the population and the expansion -precarious, but expansion nonetheless- of the middle class in the region help to explain the phenomenon. And, of course, the low penetration of insurance compared to other regions of the world provides more opportunities for growth: insurance accounts for 3.2% of GDP in Latin America, compared to 5.1% in Asia-Pacific, 6.2% in Europe and 10.5% in the United States.

What are the characteristics of the Latin American insurance market? The importance of local insurers in many of the economies (73.5% of gross premiums in Brazil, 72% in Colombia, 72.4% in Peru; the exceptions are Chile and Mexico where more than half of the gross premiums correspond to global insurers), a predominance of brokers and agents in the distribution of the industry's products (with the notable exception of life insurance in Brazil, where more than 75% is distributed through banks) and a relatively low efficiency (in Latin America, costs accounted for an average of 31% of premiums in 2022, compared to 17% in Europe). (in Latin America, costs accounted for an average of 31% of premiums in 2022, compared to 17% in Europe).

And the opportunities? There are many. The first, and most obvious, is to continue to take advantage of low insurance penetration. But there is also the need - and opportunity - to improve the industry's operational efficiency, greater digitalization - a process that is being supported by a growing number of industry-focused technology ventures - and to expand and diversify the product portfolio, adapting it to the needs of the region's population.and diversify the product portfolio, adapting it to the needs of the region's population.