iPMI Global LATAM Health Insurance and Assistance Strategies Round Table 2025

Main Theme: Latin America represents a significant growth opportunity for the insurance industry, driven by a burgeoning middle class and low insurance penetration. However, insurers must address challenges like limited digital adoption and distribution channel nuances to effectively penetrate this market.

Questions

1.????? Please introduce yourself and background in the international health and travel insurance industry in LATAM:

2.????? Can you walk us through the range of products and services you are offering the LATAM market?

3.????? Why is the Latin American insurance market considered a significant growth opportunity?

4.????? The Latin American insurance market is characterized by fragmentation. This fragmentation could potentially limit economies of scale and increase the complexity of operations for insurers. What are some of the other key challenges facing the insurance sector in Latin America?

5.????? How can the market contribute to closing the inequality gap in Latin America?

6.????? Why is operational excellence crucial for players operating in Latin America?

7.????? Which countries dominate the Latin America health and travel insurance market?

8.????? What are the key differences between public and healthcare in Latin America?

9.????? Which factors are fueling the growth of health and travel insurance in Latin America?

10. What are the future prospects for the Latin American insurance and assistance market?

Copy deadline 20/12/2024

Publishing date: January 2025

Only 3 seats remain.

Write to ipmi[at]ipmimagazine.com to book a seat at this exclusive table.

Key Takeaways:

• High-Growth Potential: Latin America is a rapidly growing insurance market, experiencing a 212% increase in life insurance GWP from 2011 to 2022. The overall insurance market grew by 176%, reaching $173 billion GWP in 2022.
• Emerging Middle Class: The Latin American middle class has more than doubled in the last 30 years, reaching 274 million people. This presents a large target market for insurance products.
• Untapped Market: Insurance penetration in Latin America is significantly lower than in developed regions. "Whereas roughly 50% of those in the US have life insurance, less than 15% of the Latin American population hold life policies."
• Partnership Opportunities: Local players dominate the Latin American insurance market. Strategic alliances with financial institutions, particularly through bancassurance models, are proving successful for international insurers.
• Digital Adoption Challenges: Digital-only products face challenges due to limited digital adoption and a preference for agent interaction. "RGA learned that consumers in Latin America generally are not yet ready for a fully digital experience." Hybrid models combining digital and agent interaction are more effective.
• Distribution Channel Dilemma: While agent interaction is preferred, agents often prioritize higher-commission products, posing a challenge for selling products targeting the lower- and middle-income segments.
• Profitability and Resilience: Despite challenges, the Latin American insurance market is highly profitable with a strong ROE and has demonstrated resilience during economic fluctuations.

Important Facts:

• Insurance density in Latin America is $295 per capita compared to $7,500 in the United States.
• One-third of the Latin American middle and upper class are vulnerable to falling back into poverty due to shocks like illness or job loss, highlighting the need for financial protection.
• Strategic alliances, like RGA's partnership with BBVA, are crucial for navigating the market and accessing distribution channels.

Conclusion: Latin America offers a compelling opportunity for insurers. Understanding the market dynamics, addressing digital adoption challenges, and forming strategic partnerships are crucial for success in this region. The market’s high profitability and resilience make it an attractive target for long-term growth and expansion.

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