Research and Markets (http://www.researchandmarkets.com/reports/c90725)
has announced the addition of Brazil Insurance Report Q1 2008 to their
offering.
The Brazil Insurance Report provides independent forecasts and
competitive intelligence on Brazil's insurance industry.
This report differs from its predecessors in that it includes BMI’s
Insurance Business Environment Rating (IBER). The rating brings together
a number of pieces of relevant quantitative data, together with BMI’s
Country Risk Rating (CRR). It is now much easier to consider the
business environment for the insurance sector in any one country
relative to the business environment for other industries in that
country that are surveyed by BMI, and the business environment for the
insurance sector in other countries.
Brazil’s IBER is 66.4. This is the highest
IBER in the Caribbean and Latin American markets. Within the region,
Brazil stands out for the current size of the non-life segment and the
likely absolute growth in non-life premiums. The same holds true for
life-premiums. However, the IBER is held back by the urgent need for
taxation reform, and the real political risks associated with
implementing the necessary reform. Over the forecast period, we
anticipate that non-life premiums will grow by 10% annually in local
currency terms and by 12% in US dollar terms. Life premiums are expected
to increase by 8% annually in local currency terms and by 11% in US
dollar terms. The key driver of growth is coming from the non-life
premium. While there will still be a significant increase in life
premiums, they are forecast to have a much lower annual growth rate.
The competitive landscape, in both the non-life and the life segment, is
fragmented. Given its size, there are a very large number of foreign
competitors. Brazil has many foreign companies operating in the market
that are not present in other countries in the region, signifying that
it is seen as a safer entry option into the region. It is unclear what
business strategy is most likely to be pursued by market competitors. An
attractive option for foreign companies may be to consolidate. Given the
number of competitors there are good acquisition possibilities.
Alternatively, niche growth strategies may continue to be pursued. It is
unlikely in BMI’s view that we will see many
new market entrants.
The strong predicted growth for Brazil and relatively stable political
environment continue to make Brazil an attractive investment option;
although there is concern that the Lula government will not be able to
give effect to necessary taxation reform. The non-life insurance market
has a strong base and is predicted to have high levels of growth. This
is the main driver of the high IBER score for Brazil, relative to the
other countries surveyed by BMI in the Caribbean and Latin American
region.
For more information visit http://www.researchandmarkets.com/reports/c90725
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