the Growing Middle-class Population, Increased Foreign Participation and Product Development Will Lead to a Rise in Awareness and Demand for Life Insurance Products Over the Forecast Period, According to a New Study on ASDReports

A brand new research report now avaliable on ASDReports, providing comprehensive market analysis, information and insights into the life insurance market in Mexico. Highlighting historical and forecast data, various distribution channels and profiles of top life insurance companies in the region, this one of a kind report is an essential tool for all those with an interest in this exciting, rapidly-expanding market.

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Additional report highlights:
Mexico is the second-largest economy in Latin America and has the fourth-highest GDP per capita after Chile, Brazil and Argentina. In 2009, the Mexican economy recorded a decline of more than 19% in GDP at current prices due to the global financial crisis, which affected exports and foreign direct investment. Despite this, the industry expanded during the review period at a compound annual growth rate of fewer than 10% in terms of gross written premium. The growth was partly due to the robust regulatory environment and favorable demographic dividends, especially the rising middle-class population. The introduction of innovative insurance products, growth in micro-insurance and foreign participation also contributed to this growth.

The life insurance penetration was under 1% of the country’s GDP in 2012. The penetration level is low, even by Latin American standards– and signifies an opportunity for product and distribution channel growth. International insurers have positioned themselves well in the industry to benefit from the opportunities. New foreign insurers are entering into the life insurance segment in order to benefit from the low penetration level

The disposable income of a country plays significant role in the growth of the life insurance segment as high disposable incomes indicate that the population has the ability to buy insurance products with a view to saving. In 2011, the gross national disposable income of Mexico stood at MXN13,610 (US$1,095), less than MXN25,889 (US$2,083 billion) in Brazil in the same year. Mexico is the second-largest economy in the Latin American region after Brazil, yet its low gross national disposable income is posing a major challenge for the growth of the life insurance segment.