"All stakeholders must work together to drive inclusion for all"
Peru, Personal Insurance: What does the plate that everyone is fighting over contain and what size is it? A few days ago we agreed that for everyone, being able to have private health insurance, in some of its versions, is the most important thing, the first priority. We also agree that three million (Approx. 1 mm EPS, 1mm Insurance, 1mm Prepaid) of Peruvians already have private health insurance, in some of its versions, due to this they could be interested in contracting another type of insurance, a second product. Having defined the total size (3mm), now we are going to see what the plate that everyone is fighting over contains and what size it really is. Regarding the plate, it contains individual, non-mandatory Health, Auto, Life, Home, Accident and Fraud insurance among others. These products are distributed by Brokers, Agents, Direct, Banks or similar. Now, what is the real size of the market that everyone is fighting for. If we take the market ratio that tells us that on average in health insurance, in its different versions, we have one owner plus a dependent, we can say that of the three million, only 1,500,000 are the owners. Likewise, on the automobile side, it is estimated that only 240,000 (12% of the total in the country) private vehicles are insured and approximately no more than 150,000 people have individual life insurance. Regarding home insurance, unfortunately it is an irrelevant number. Offshore life and health insurance is not contemplated here, which has a very important participation in segment A. In the case of accident, fraud or similar products that are sold optionally by banks, finance companies and retailers, these have interesting portfolios in terms of their size but end up being revolving doors. The persistence in these products in general is very low and what these companies are looking for is to maintain a stock regardless of how many people leave and enter these products. There is very little consumer loyalty. In summary we can say that the optional personal insurance market is very small, it practically does not grow and in some cases the number of insured decreases, as is the case of individual health insurance. The aforementioned figures can and should be analyzed in greater detail since it is the only way to know what the real starting point is in order to make a collective effort to increase the penetration of insurance among the population. Finally, we must remember: "All stakeholders must work together to drive inclusion for all" The Insurance Elephant Company Patrick KelahanAjay SharmaMichael NazarethHealthMitraMostapha GhaziriQuality of Performance Consulting LDA
