The insurance market earned BRL 15.9 billion in July, an increase of 6.5%, compared to the same period in 2022. This is what the 34th edition of the IRB+Market Bulletin shows, as released today (10/10) by the IRB+Intelligence platform, based on the regulating body for the segment, Susep, when informed about it, on 09/25. The highlight was the Individual Against Damage segment, where there was a 13.1% increase.
As for the first seven months of the year (7M23), the industry issued BRL106.2 billion in premiums, an increase of 11.9%. Over the period, the highest variation was in the Credit and Guarantee segment: 17.9%.
In July, the loss ratio decreased by nine percent (p.p.) compared to the same period in 2022, reaching 35.6%. In 7M23, the ratio registered 43.1%, which represents a drop of 12 percent points (p.p.), mainly caused by the Rural segment.
Rise in all industries
The Life segment, which represents 32.7% of the insurance market, earned BRL5 billion in July, having a rise of 5.4% year-on-year. During the year, the increase of 8% was mainly due to the growth of Life insurance, especially in the Individual modality (19.2%). The loss ratio dropped 2.3 percent, reaching 29.9% during the 7M23.
The Automobile, accounting for 30.1% of the market, also issued BRL5 billion in premiums, with a rise of 8.3% on July 2022. Despite being positive, the rate is the lowest of the year and reflects the slowdown in growth. One of the consequences of this behavior is the high comparison base values, as in 2022 the segment recorded an average monthly variation of 33.2%. In the accumulated period, the increase was 16.5%, and the loss ratio decreased from 73.1% (7M22) to 59% (7M23).
The Corporate Damages and Liability Division, which accounts for 18.7% of the market, collected BRL2.6 billion in July, an increase of 6%. In 2023, the rise was of 11.8%, compared to 7M22. The loss ratio dropped from 41.7% (7M22) to 39.4% (7M23), following the trend started in 2020.
Individual Protection against Losses, which holds 7.6% of the market, had the greatest variation in July among the segments assessed: +13.1% compared to the same month in 2022, with a turnover of BRL1.2 billion. As for the accumulated figures for 2023, the segment recorded a 13% increase and a five percent drop in loss ratios: 33.4%.
Accounting for 7.4% of the market, the Rural segment accumulated BRL1.6 billion in sales in July, an increase of 2.3%. In the accumulated period, the positive variation was 8.6%, and the loss ratio decreased from 144.7% (7M22) to 36.9% (7M23), representing a reduction of 107.8 percent. It is important to point out that the basis for comparison, 2022, has been affected by atypical weather events.
Finally, the Credit and Guarantee segment (representing 3.4% of the market) recorded a slight increase (1%), with a revenue of BRL495 million in July. During 7M23, the increase was 17.9%, in comparison to 7M22. The segment was the only one to record an increase in loss ratios, which went up from 40.6 to 65.9% percent.
The IRB+Market Bulletin summarizes insurance operations, considering damages, liability and personal insurance. The edition also lists the top five insurance groups by line of busines and is available, in full, at the website www.irbre.com. Just like the IRB+Insurance Market Dashboard , which allows dynamic and free of charge consultation of information from the entire segment.
