Peru Life and Non-life Insurance Market Size

Peru Life & Non-life Insurance Market Analysis

The Peru insurance industry has been undoubtedly impacted by the coronavirus (COVID-19) pandemic. The Peru's insurance industry went to negative from stable, citing the negative impact of COVID-19 on revenues, along with a significant amount of early withdrawals from the country's Private Pension Fund system and its negative effect on premiums.

As of 2020, Peru's Insurance market is the 7th largest in South America. Within the economies of South America, the insurance market contracted 0.7% in 2020 (-2.4% in real terms). This was mainly because of the pandemic that worsened the living conditions in the region, and has particularly affected small to medium-size enterprises (SME), job creation and public finances. In 2018, insurance premiums written in Peru accounted for 1.7 percent of the country's GDP, up from a share of 1.6 percent reported in the previous years. That same year, insurance premiums amounted to over 14 billion U.S. dollars in the South American country. Higher benefits paid from the life insurance segment greatly influenced the overall underwriting performance. Declines in technical results and financial income led to a contraction of 28.8% in net income and a return on assets of 1.9%, the lowest in five years. Given the importance of life insurance products, operating performance will continue to rely on investment income to generate positive results.