Insurance Intermediary Commissions in the Dominican Republic
At the close of 2023, the insurance intermediary sector in the Dominican Republic experienced notable growth, driven by the increase in commission volumes paid to agents and brokers. Total intermediary commissions reached DOP 12.525 million, representing a 21.5% nominal year-over-year increase compared to DOP 10.306 million in 2022. This significant growth underscores the continued expansion of the insurance market and the increasing reliance on intermediaries to drive sales across various coverage types.
Commission Distribution by Coverage
The composition of commission payments is heavily concentrated in a few key sectors. Motor insurance and civil liability account for 32.6% of all intermediary commissions, making it the largest contributor. This is followed closely by health insurance, which represents 30.9% of the total commissions. These two categories alone make up more than 60% of the commissions, highlighting their importance in the Dominican market.
Catastrophic risk insurance contributes 9.6%, while collective life insurance accounts for 9.1%. Fire insurance commissions are relatively smaller at 6.2%, with other coverages making up the remaining 11.7%. This distribution demonstrates the varied nature of the Dominican insurance landscape, where both high-frequency products like motor and health, as well as more specialized coverages like catastrophic risks, play significant roles.
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Commission Distribution by Intermediary Type
A deeper look into the distribution of commission payments by type of intermediary reveals that brokers dominate the market, receiving 74% of all commissions. This overwhelming share indicates the critical role that brokers play in connecting insurers with clients across different insurance lines. General insurance agents, who handle a range of non-life products, account for 12% of the commissions, while general agents, who typically represent a broader portfolio of products, secure 11%. In contrast, life insurance agents—referred to as agents of personal insurance—capture only 3% of the commission volume.?
?Leading Insurers in Commission Growth
In terms of market share gains within the commission segment, Seguros Reservas leads with a 2.6% increase in market share. Banesco follows with a 0.8% increase, while Seguros Crecer, Seguros Worldwide, and Seguros Universal gained 0.5%, 0.4%, and 0.2% market share, respectively. These gains reflect the aggressive strategies adopted by these companies to boost their presence and influence within the intermediary channel.
Insurers with the Largest Commission Volumes
The insurance market in the Dominican Republic remains highly concentrated. The top 10 insurers collectively account for 87% of all commissions paid to intermediaries. Among these, Humano Seguros, Seguros Reservas, and Seguros Universal emerge as the dominant players. Other significant contributors include La Colonial, SURA, MAPFRE, Seguros Worldwide, Creciendo Seguros, Banesco, Seguros Pepín, and La Monumental. This high concentration suggests that the market is largely controlled by a few key players, with smaller insurers vying for the remaining 13% of intermediary commissions.