|[February 01, 2013]
BestWeek: Insurers Could Look to Microinsurance to Boost Penetration in Untapped Brazil Market
OLDWICK, N.J. --(Business Wire)--
As the sixth-largest economy in the world, with an insurer penetration
rate of just 2.5%, Brazil is a prime target for insurers, according to
the latest issue of BestWeek U.S./Canada. Despite 170 insurers
and reinsurers operating in the country, insurance has not been on the
general public's radar. "One of the big problems in Brazil, and other
parts of Latin America, is the common person's awareness of the use of
insurance products," said Andrea Keenan, vice president of research,
ratings criteria and relations for A.M. Best Co. "In order to
increase the penetration level there has to be a structural shift."
Microinsurance is one mechanism that could cause that shift, she added.
BestWeek Europe looks at signs of doubt among two of the
European Union's most important national regulators as to when and how
the EU's Solvency II directive will go into effect. It's looking
unlikely to meet its current timetable for 2014 implementation.
The aftermath of Hurricane Sandy has brought with it increased
interest and awareness of the excess flood insurance market, which
industry members tell BestWeek U.S./Canada could result in
higher rates, at least in the short term.
Patrick Fleming, an excess flood specialist for Jimcor Agencies, said
Sandy will have "lasting effects" on the excess flood market. The top
provider of excess flood coverage are underwriters at Lloyd's, which has
reacted to Sandy losses by restricting underwriting territories,
reducing aggregate premium available in most coastal counties in the
Northeast and increasing prices between 25% to 35%, he said.
BestWeek can be accessed on iPads and mobile devices at www.bestweek.com.
BestWeek is published by A.M. Best Co. for insurance
professionals. To subscribe, visit www.ambest.com/sales/BestWeek.
Founded in 1899, A.M. Best Co. is the world's oldest and most
authoritative insurance rating and information source. For more
information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
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