Life insurance business in El Salvador is small, with gross premiums in ---- estimated to have reached around USD---mn, USD-mn higher than the level we estimated in the previous quarter. The economic situation means that growth in premiums will be just -.- in ----, a significant downgrade from the -.- forecast in the previous quarter. ...Life insurance business in El Salvador is small, with gross premiums in ---- estimated to have reached around USD---mn, USD-mn higher than the level we estimated in the previous quarter. The economic situation means that growth in premiums will be just -.- in ----, a significant downgrade from the -.- forecast in the previous quarter. Growth will rebound to the --- range in following years, taking premiums to USD---mn. ...Per capita gross life premiums are forecast to reach USD--.- in ---- and USD--.- in ----. As such, growth prospects are quite restrained across the sector, with a high level of competition limiting pricing power, and the preference for group policies over individual ones limiting scope for volume expansion.
...Despite a sluggish growth outlook for the El Salvador economy, over the rest of the decade to ----, we anticipate a modest increase in the middle classes, which will help to drive demand for life insurance. However, this growth will likely come through group products purchased through employers rather than premium individual life cover. ...Despite a sluggish growth outlook for the El Salvador economy, over the rest of the decade to ----, we anticipate a modest increase in the middle classes, which will help to drive demand for life insurance. However, this growth will likely come through group products purchased through employers rather than premium individual life cover. With anticipated growth set to remain around --- over the next five years, gross life premiums will reach USD---mn by ----. This will translate to life insurance density of a little over USD-- per capita, a steady increase from current levels. In this time, we expect the market-leading trio of Sisa, Asesuisa and AIG, recently acquired by Panamanian insurer ASSA, to remain to the fore, with the acquisition of smaller players a distinct possibility along the way.
...< ALACRA META ABSTRACT>BMI View: El Salvador s insurance market is small with a low level of penetration and density that is unlikely to change significantly over the next five years, even though it is set for solid expansion. The non- life segment will become increasingly dominant as its growth will pass the life segment, helped by strong growth in health premium. ...
