Brazil’s general insurance industry primed for growth

Written by Michael Griffiths

12/09/2024

Brazil’s general insurance industry is expected to grow at a compound annual growth rate (CAGR) of 8.8% over the next five years, according to estimates from GlobalData.

This would take the Brazilian market from a value of $61.6bn in 2024 to $85.7bn in 2028, in terms of direct written premiums (DWP).

GlobalData’s analysis has indicated that Brazil’s general insurance industry is expected to grow by 10.8% in 2024 alone, driven by increasing demand for policies covering natural catastrophic events, investment in infrastructure projects, and rising premium rates across general insurance lines due to inflation.

Insurance analyst at GlobalData, Aarti Sharma, noted that the general insurance industry in Brazil expanded by 14.3% in 2023, recording the highest growth in the last five years.

“This robust increase was bolstered by a heightened demand for health insurance and a surge in automobile sales,” Sharma said. “Although the industry faces potential challenges from climatic risks and a challenging economic and geopolitical environment, it is expected to maintain sustainable growth over the long-term.”

Personal accident and health (PA&H) insurance is the leading line of business in Brazil, which GlobalData is expecting to account for a 56.6% share of general insurance DWP in 2024.

The analytics firm suggested that the PA&H market will grow by 12% in 2024 alone, supported by increasing demand for health insurance due to heightened awareness after the COVID pandemic, as well as rising medical inflation that has increased the cost of treatment.

Sharma added: “Changing demographic factors, such as the country’s aging population, will also support the growth of PA&H insurance.

“As per GlobalData estimates, 10.5% of the country’s population was aged over 65 years as of 2023, which is expected to reach 11.3% by 2025. PA&H is expected to record a CAGR of 8.7% over 2024–28.”

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