Insurance

With net insurance premium growth of 16% in 2013, the Peruvian insurance sector continues to outperform regional neighbours such as Mexico (11%) and Colombia (8%). Double-digit growth is expected to continue through 2015, propelled by small businesses and the modernisation of mature industries and infrastructure. However, gross premiums to GDP, which stood at 1.5% at the end of 2012 (half the regional average of 3%) demonstrate the weak penetration in Peruvian market. Following the passage of significant domestic regulatory reforms in 2012, Peru’s insurance industry now faces the challenge of modernising its practices in preparation for the Solvency II standards, while also coming up with novel ways to engage first-time customers.

The sector’s broader economic significance will persist, with insurance companies collectively constituting the second-largest institutional investor in Peru with approximately $9bn in assets under management.