Recently published research from Business Monitor International, "Mexico Insurance Report Q1 2015", is now available at Fast Market Research
[USPRwire, Fri Nov 21 2014] We expect to see relatively substantial growth in Mexico's insurance market during our current forecast period, with property and motor insurance driving the expansion of the non-life sector as the market benefits from new legislation implementing compulsory third party liability insurance on federal highways and government investments in infrastructure gain ground. While market penetration will remain low, premium growth via product innovation will remain robust.
Mexico's regulatory environment is improving, with a 2015 compliance date set for a Solvency II style capital requirement framework, emulating EU and US regulatory trends, encouraging reform in the market. Over the longer term this may help to encourage growth in domestic insurers, though at present we expect the dominance of international insurance groups such as AXA and MetLife to continue. Alongside regulatory reform, Mexico is also experiencing healthy economic growth, with GDP growth 3.7% forecast for 2015, increasing to 4% by 2018. This economic growth supports the forecasts of growth across a range of insurance products, particularly property, which we expect to expand by around 7% a year during the forecast period (in terms of gross premiums written).
The non-life segment in general is expected to reflect the most positive growth during the forecast period, with overall growth of over 11% expected in terms of non-life premiums in 2015. Aside from property, this growth will be primarily driven by motor insurance. Currently motor insurance is only mandatory in select Mexican states, with no nationally legislated requirement. However, 2014 saw the introduction of compulsory vehicle insurance on federal highways which will encourage growth in the auto insurance industry and help to maintain motor's dominance of the non-life segment.
Growth in the life sector will also be strong at around 8% per year in terms of gross premiums written. As Mexico's domestic economy improves we expect to...
The Mexico Insurance Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Mexico Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Mexican insurance industry.
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