Insurance Industry to grow across all lines despite challenges – Moody’s – Peru

8/23/11 Source : BNAmericas

Peru’s insurance industry is likely to continue with strong growth across all business lines due to a good macroeconomic outlook and industry players’ growing managerial sophistication, ratings agency Moody’s wrote in a report.

“We expect premium volume to grow across most lines, including surety, cargo and homeowners, automobile, and life insurance, annuities and pensions,” said Moody’s analyst Diego Nemirovsky.

Peru’s insurers have remained well capitalized after the 2008 financial crisis, and the ratings agency expects this trend to continue, reflecting the improvement in financial markets, good profitability and a strengthening of underwriting conditions.

But Nemirovsky also noted several challenges for the industry, including high market concentration, low penetration of insurance products relative to regional peers and Peru’s geographical vulnerability to natural disasters.