The results that were released by(Superintendence of Private Insurance) in relation to the insurance sector reveal very encouraging numbers. From January to June this year, the Brazilian insurance industry grew by 21.82%.
This demonstrates that, with the faster pace of vaccination, as well as the greater flexibility of social isolation and the increase in GDP in this first semester, they are translating into positive effects for the entire country.
In addition, some locations stood out in relation to the growth of the auto insurance sector. Follow the content to learn more about the current market situation!
Growth of the insurance sector
In a scenario where the sector’s growth is being positive, regions such as the North and Northeast have their due prominence. In studies in the North of the country, an increase in the collection of 70.18% was recorded, compared to the same period last year.
In the first six semesters of 2021 alone, the insurance sector raised more than BRL 4 billion in the region. However, in the Northeast, the growth was 31.98%, with a collection that exceeded more than R$ 13 billion.
Ronaldo Dalcin, president of Sindseg N/NE (Sindicato das Seguradoras Norte e Nordeste), said: “When we look at the performances of our union region, we obtained a growth above the national average. In fact, more than R$ 48 billion were returned to society in the form of indemnities, benefits, refunds, and redemptions”.
According to the executive, these numbers represent the essence of the insurance sector. “We have made significant contributions to the country’s development. Whether they are for tax collection, job and income generation, as well as a financial guarantee to families, business continuity and what we call broad protection”, adds Ronaldo.
Among the products that had the best performances in the two most outstanding regions in the country during the last semester are:
- VGBL pension plan with an increase of 54%;
- Life insurance with an increase of 41.5%;
- Massified insurance (business, condominium, and residential) with an increase of 32.5%.
“The sense of need for protection has increased significantly, and we know how much our activity can provide this support to the population. Building the development of countries depends on the contributions and strength of the insurance market. In fact, these positivist expectations give me the confidence to say that the pace of growth will continue,” says Ronaldo Dalcin.
For insurance industry executives, the worst is over!
Some executives say that the worst of the pandemic is over, so the increase and strengthening of the expectation of closing this year with a percentage of collection in the order of double digits. In fact, in the wake of economic indicators, this is a great advance.
“However, it is important to be attentive and vigilant in relation to some essential points to enhance our performance: fiscal and tax reforms, improvement in income distribution, and a strong policy for the development of the worrying indicators related to the unemployment rate in the country, which reached the record of 14.7%”, concludes Ronaldo.
Because of this, it is not possible to set a correct expectation for the rest of the year. In other words, the scenario may change and will crucially depend on the size of the GDP growth rate to make room for the recovery of lines of insurance that fall short in industrial, agricultural, and commercial production, which are cases of large property risks.
In addition, it will also depend on the increase in personal income and employment, fueling the demand for basic equity and social security products, life coverage, supplementary health care, and capitalization.
As much as the worst of the pandemic has passed, it is still necessary to keep an eye on market fluctuations.