The growth of the Latin American economy since the beginning of the last decade - despite the negative figure for 2009 and the slowdown of the last three years - coupled with millions of people joining the middle income layers, provided a favorable scenario for expansion of insurance in the region. In 2015, premium income in Latin America amounted to almost US$139 billion, equivalent to 2.86% of regional GDP. That figure represents a one percentage point increase from 10 years before.
However, even with this growth, the gap between Latin America and more developed countries remains large. In the United States, premiums are equivalent to more than 8% of GDP. The novelty in Latin America is that, in order to reduce that shortfall, it no longer seems sufficient to offer the same products to more customers.
Facing an environment of greater competition and new demands, insurers are launching innovative products in niche markets with high growth potential. Products such as insurance against the risk of cyberattacks, new coverage for renewable energy projects, merger and acquisition insurance, and low-cost policies for cars up to 25 years old are expanding in Latin America.
In this report we describe these new lines of insurance and analyze their growth prospects in the short and medium term.