Insurance

Although the sector’s medium-term growth is likely to be impeded by weak economic conditions, the Mexican Association of Insurance Companies forecast that total premium would rise by 3.4% in 2019, though downgrades have been made in subsequent forecasts. This is likely to weigh most heavily on the non-life segment due to the impact of fiscal austerity on government spending. The life segment, meanwhile, is expected to continue to perform well, but its expansion will still be constrained by the weaker labour market. In the longer term, economic recovery and increases in real wages are expected to gradually reduce poverty rates and broaden the potential market for both life and non-life plans. With insurance penetration still only around half the level of the more advanced Latin American countries, there is significant scope for growth in the years ahead. This chapter contains an interview with Mario Vela Berrondo, CEO, Prudential Insurance México.