Axco Insurance Information Services (Axco) has released its latest non-life (P7&) insurance market report on Chile. The report contains must-know regulatory information such as the country’s non-admitted position, crucial tax rates, analysis of the market trends and key lines of business. It also includes the latest market indicators and company statistics.
The insurance market is deregulated and there are no tariffs, although the government does stipulate rates for specific agricultural insurances in which it subsidises premiums.
Latest non-life premiums excluding PA and healthcare totalled CLP 3.1trn (USD 3.9bn), an increase of 8.2% in local currency terms over the previous year and 39% of total market premiums. PA and healthcare premiums amounted to CLP 878.8bn (USD 1.1bn), 11.2% of total market premiums.
Foreign-owned insurers dominate the insurance market and authorisation of new non-life participants continued with the approval of local credit and surety player Suaval (writing mainly surety business) in 2018 and Contempora in January 2019. Fidelidade, the largest Portuguese insurer and part of Chinese investment group Fosun, opened a non-life insurer FID Generales de Seguros SA, in January 2020.
Property not only remained the largest non-life class in 2020 but grew at a faster rate than most others, by 25.3% compared to 8.2% for the non-life market as a whole to CLP 1.4trn (USD 1.7bn), representing 45.2% of the non-life portfolio excluding personal accident and healthcare. Growth was driven mainly by rating increases as a result of the Social Outbreak and a general hardening of reinsurance markets.
In contrast, Motor contracted by 5.1% in local currency to 28.4% of the market but posted a loss ratio below 60% for the first time in a decade. The negative growth in 2020 was mainly due to the COVID-19 pandemic, measures imposed against it and the accompanying general economic downturn. New vehicle sales were, for instance, down by just over 30% compared to the previous year.
Axco’s insurance market reports offer a uniquely detailed and comprehensive insight into the global non-life (P&C) insurance industry, combining the legislative and regulatory requirements, insurance market developments, and insurance market statistics of not only Chile but also of over 170 territories worldwide.
Axco is the leading supplier of global insurance market information with over 55 years’ experience in researching and publishing industry intelligence on insurance and employee benefits. Its unique business model and methods of research have enabled the development of an extensive suite of products comprising in-depth reports, focused profiles, Q&A databases, intelligent questioning tools, and email services which are delivered to every corner of the globe.