Brazil's life insurance market is expected to increase at a CAGR of 12.3% to US$56.4bn in 2015, according to the BRICdata report. The market size in 2011 is estimated at US$35bn.
As per the report, the two key drivers of this growth will be increased sales of deferred annuity products (individual pensions) and bancassurance.
The pension products, also referred to as Vida Gerador de Benefícios Livres (VGBL), accounted for 79.7% of the life insurance industry in the Latin American nation. The increased access to formal banking channels is the other key driver to the life insurance business.
The low penetration of insurance makes Brazil an attractive market for insurance companies to explore business opportunities. About 70% of the employed population still remains uninsured, according to the report.
The nation’s regulatory environment is, however, expected to become conservative following new proposals by the Superintendence of Private Insurance (SUSEP), according to the report.
The full report ‘Life Insurance in Brazil, Key Trends and Opportunities to 2015’ is available from BRICdata. Click here for more details.