Strong growth forecast for Brazil’s general insurance industry in 2024

Brazil’s general insurance industry is expected to grow by 10.8% in 2024, driven by increasing demand for policies covering nat cat events, investment in infrastructure projects, and rising premium rates across general insurance lines due to inflation, according to GlobalData.

Aarti Sharma, insurance analyst at GlobalData, said: “The general insurance industry in Brazil expanded by 14.3% in 2023, recording the highest growth in the last five years. This robust increase was bolstered by a heightened demand for health insurance and a surge in automobile sales. Although the industry faces potential challenges from climatic risks and a challenging economic and geopolitical environment, it is expected to maintain sustainable growth over the long term.”

The analytics firm said personal accident and health (PA&H) insurance is the leading line of business, which is expected to account for a 56.6% share of general insurance DWP in 2024. It is expected to grow by 12% in 2024, supported by increasing demand for health insurance due to heightened awareness after the Covid-19 pandemic as well as rising medical inflation that has increased the cost of treatment.

“Changing demographic factors, such as the country’s aging population, will also support the growth of PA&H insurance. As per GlobalData estimates, 10.5% of the country’s population was aged over 65 years as of 2023, which is expected to reach 11.3% by 2025. PA&H is expected to record a compound annual growth rate (CAGR) of 8.7% over 2024-28,” said Sharma.

Motor insurance is the second leading line, which is expected to account for 20.4% DWP share in 2024, said GlobalData. It is expected to grow by 8.3% in 2024, supported by an increase in vehicle sales, including an increase in electric vehicle (EV) sales. Rising premium rates for motor insurance policies will also support growth in the short term.

Property insurance is the third-largest line, expected to account for 16.3% of the total DWP share in 2024. Property insurance is expected to be driven by increased demand for policies covering nat cat events, as storms, cyclones, and powerful winds have become more frequent in Brazil. GlobalData said public and private sector investments in transport infrastructure projects to improve regional connectivity will also support property insurance growth. Property insurance is expected to grow at a CAGR of 9.1% over 2024-28.

According to GlobalData, the general insurance industry in Brazil is expected to grow at a CAGR of 8.8% from BRL307.3bn ($61.6bn) to BRL430.7bn ($85.7bn), in terms of direct written premiums.

Sharma added: “The Brazil general insurance industry presents a positive outlook, supported by increasing demand for health insurance, shifting consumer preference towards EVs, and rising demand for policies covering nat cat events. Building sustainable solutions to limit the impact of inflation and climate change on general insurance lines is expected to be a focus area for the insurers.”