XXIII Asamblea Annual de ASSAL Round Table Discussion: Market Developments April 25, 2012 Andrea Keenan Assistant Vice President, Economic & Industry Research.

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Presentation transcript:

XXIII Asamblea Annual de ASSAL Round Table Discussion: Market Developments April 25, 2012 Andrea Keenan Assistant Vice President, Economic & Industry Research

Talking Points 1.Insurance Market Potential –Global comparison –Aggregate growth drivers 2.Country Risk and Obstacles to Growth –How risk assessment is developed –Country risk in the region

Economic Growth in Latin America

Premium Growth in Latin America Projection

GDP Per Capita Drives Insurance Market Penetration

GDP Per Capita in Latin America Trendline

Country Risk The risk that country-specific factors could adversely affect an insurer’s ability to pay its financial obligations Economic Risk Macroeconomy Prospects Government Finance Political Risk Business Environment Government Stability Social Stability Legal System Financial System Risk Non-Insurance Insurance Banking System Reporting Standards & Regulation Sovereign Debt Government & Legislation Supervisory Authority Insurer Accountability CRT-1 Lowest Risk CRT-5 Highest Risk CRT-3 Moderate Risk

Country Risk in Latin America CountryCRTCountryCRT Argentina4Guatemala5 Bolivia5Honduras5 Brazil3Mexico3 Chile2Nicaragua5 Columbia4Panama4 Costa Rica4Peru4 Ecuador5Venezuela5 El Salvador4

Country Risk Relates to Insurance Market Development

Political Risks World Bank Doing Business Rank out of 183 countries Corruption Perceptions Index (higher score implies less perception of corruption)

Degree of Government Intervention World Average

For additional information Andrea Keenan