The insurance market experienced record growth in August. This is shown by the 24th edition of the IRB+Market Bulletin, a monthly report from the IRB+Intelligence platform, produced based on data published on Oct/03 by Susep – the entity that regulates the sector. In the eighth month of the year, the revenue of insurance companies increased by 29.4% compared to the same period in 2021 and reached R$ 16.3 billion. It is the highest nominal growth of the year. In the year to date, premiums issued in 2022 already exceed by R$ 19.3 billion the revenue recorded in the same period last year, reaching R$ 111.25 billion.
The data also show a decrease in the loss ratio (claims that occurred over the month’s revenue) in August. There was a decrease of 7.9 percentage points (p.p.) compared to the same month in 2021. The recovery was driven by the segments Life (-17.7 p.p.) and Corporate Damage and Liability (-19.6 p.p.), which offset the growth of the rate in the other segments. Year-to-date, the index grew 2.8 p.p. compared to the rate recorded in the first eight months of the year, mainly impacted by Rural (52.8 p.p.) and Auto (13.7 p.p.)
By segment
In August, Life, which represents 33.7% of the total collected by the sector in the first eight months of the year, recorded revenues of R$ 5.4 billion, a growth of 17.4%. In the year, it totals R$ 37.5 billion (+12%). The loss ratio until August registered a drop of 18.2 p.p. and, as a result, it reached 32.1%, in line with what has been observed since the beginning of the year.
The rise in the prices of vehicles and parts still impacts premiums written in the Automobile segment. In August, there was an increase of 45.5% compared to the same month of the previous year, with revenues of R$ 5 billion. In the year to date of 2022 already, it reached R$ 32.5 billion, an increase of 33.9%. The accumulated loss ratio from January to August was 72.6%.
The Damage and Liability segment recorded revenues of R$ 2.5 billion in August (+27.6%) and R$ 20.3 billion (+18.1%) for the 2022 year-to-date period. The loss ratio for the year retracted 4.2 p.p., reaching 40.8%. Individual against Damage earned R$ 1.2 billion in the eighth month of the year (+11.5%). The year-to-date income for 2022 was R$ 8.4 billion (+8.9%). The loss ratio was 37.9% from January to August was 37.9%, an increase of 7.8 p.p. compared to the same period of 2021.
Rural showed an advance of 51.7% in August, compared to the same month in 2021, when it increased R$ 1.9 billion, the highest revenue in 2022. In the year to date, it reached R$ 9.1 billion and recorded a positive variation of 43%. The monthly loss ratio decreased by 12.3 p.p. and remained at 51.2%. In the year, it reached 131.8%.
Finally, Credit and Guarantee obtained, in August, revenues of R$ 465 million (+16.8%). Year-to-date, the segment’s progress was 18%, with approximately R$ 3.5 billion. The loss ratio grew by 5.2 p.p. from January to August, reaching 25.4%, reflecting the positive variation of 42.3% in claims against the same period last year.
The IRB+Market Bulletin summarizes insurance operations, considering damage, liability and personal insurance. The edition also lists the top five insurance groups by line of business. The analysis is available, in full, on the IRB Brasil RE website. On the same website, the IRB+Insurance Market Dashboard allows dynamic and free consultation of information from the entire sector.
