Insurance

The Peruvian insurance sector has experienced a decade of strong growth, benefitting from sustained economic expansion, a significant reduction in poverty levels and a rising middle class. In the 10 years to 2013, premium income tripled, and according to the Peruvian Insurance Association, net premiums then increased by 5.36% to $3.54bn in 2014. In the first 11 months of 2015 total premiums hit $3.4bn, up by 7.6% year-on-year. In 2013 the largest source of revenue – 40.4% of net premiums – came from general insurance, followed by private pension fund life and accident cover (24.9%), general life (21.2%), and accident and health insurance (13.5%). The penetration of products remains low, meaning there is still significant room for growth. The latest estimates are that total premium income reached 1.85% of GDP in 2014, up from 1.18% in 2007, but still below levels in neighbouring countries, such as Chile. This chapter contains an interview with Daniel Schydlowsky, Former Superintendent, Superintendence of Banks, Insurance and AFPs.