The insurance sector is closely linked to economic performance, in other words, this allows development to be positively influenced by strong global growth and moderate inflation.
Thanks to the digitization that derived from the digital transformation and technology, the insurance industry has diversified with the contemplation of new products, however, health policies remain at the top as they are the ones that have occupied the most ground so far.
According to data from the Chilean Association of Insurers (AACH), in 2018 alone, the market grew by close to 3%, with a penetration of 4.6% in the national GDP. The health branch increased to 7.4% in premiums in the third quarter of that year with 9,112,935 people insured.
Jorge Claude, vice president of the AACH, affirms that the factors that explain the previous behavior are due to the high health costs, together with the fact that the provisional systems cannot cover the expenses associated with accidents or critical illnesses.
As far as general insurance is concerned, they have been in charge of moving the market. Thanks to a report issued by the AACH, the projection between 2018-2019 was known, which denoted an increase of 1.6%.
The most prominent insurances are:
- Social responsability.
- Mandatory personal accident insurance (SOAP).
- Transport Guarantee and credit.
These insurances had a growth in 2018 of 22.8%, obtaining UF. 3,286,457 direct premium.
As we explained well at the beginning of the article, the economy affects the insurance sector, which is why the current abrupt stoppage of it will have direct and indirect repercussions on insurers.
Insurers will finally have to transform and adapt to continue their development and growth and take advantage of this global «test» to get out of their comfort zone, towards new and better horizons.