The insurance market closed October on a high. In another month of growth, the sector earned the equivalent of R$ 15 billion, an increase of 24.5% compared to the same period last year. All the calculated segments showed an increase of more than 10%, with emphasis on Credit and Guarantee (+71.3%). This is shown by the 26th edition of the IRB+Market Bulletin, a monthly report from the IRB+Intelligence platform, produced based on data published on Nov/28 by Susep – the entity that regulates the sector.
For the year-to-date period, the revenue totals R$ 141.7 billion from January to October, a growth of 22% compared to the ten months of 2021 or an increase of R$ 25.6 billion. The highlights are Automobile insurance, with R$ 10.7 billion more, and Life, with an increase of R$ 5.7 billion. Rural was the segment with the highest growth in the year (+41.3%) until October, and has already surpassed all the revenues earned in 2021, together with Automobile and Credit and Guarantee.
In October, the Claim Expenses on the Accrual Basis accounting decreased 7.8 percentage points (p.p.) in comparison with the same month of 2021. The recovery in claims was mainly driven by the Life segment (-2.4 p.p.). In the year, the index grew 0.8 p.p. compared to the rate recorded in the same period last year, mainly due to the Rural segment (+28.3 p.p.).
By segment
In October, Life recorded revenues of R$ 5.2 billion, a growth of 22.3%. In the year, the segment, which represents 33.8% of the total earned by the sector totals R$ 47.9 billion (+13.6%), with emphasis on the Individual Life product (+24.4%). In the 10M22, the loss ratio reduced by 15.6 p.p. and reached 31.9%, a level similar to that prior to the impacts of the covid-19 pandemic.
The Automobile segment, on the other hand, recorded revenue of R$ 4.4 billion in October, an increase of 32.3% on an annual basis. In the 2022 year-to-date period, the segment grew 34.6% (R$ 41.5 billion). According to TEx Analytics, the Auto Insurance Price Index remained stable at 6.5% and, for the third consecutive month, did not increase. The loss ratio in the segment was 71.1% in the accumulated ten months of the year. However, October was the first month of the year that recorded a decrease in the indicator (-3.5 p.p.): 63.8%.
The Damage and Liability segment recorded revenues of R$ 2.4 billion in October (+10.9%) and R$ 25.2 billion (+17.7%) for the 2022 year-to-date period. The Transport business line was the one that most contributed to the monthly growth of this insurance segment. The loss ratio until October fell by 4.5 p.p. and reached the lowest level for that period since 2014: 38.2%.
Individual against Damage reached, in October, R$ 1.1 billion (11.7%) in revenue. The year-to-date income for 2022 in the segment was R$ 10.6 billion (+9.8%) mainly influenced by the Residential Comprehensive product. In the 10M22, the loss ratio increased by 2.1 p.p. and stayed at 36.9%. However, in October, the ratio had its second monthly decrease compared to the same month in 2021 (-12 p.p.) and reached 35.2%.
Rural showed an advance of 36.2% in October, compared to the same month in 2021, when it earned R$ 1.2 billion. In the year to date, it reached R$ 11.9 billion and recorded a positive variation of 41.3%. Revenue from January to October 2022 already exceeds by 23.2% what was earned in the entire year of 2021. Despite this, the accumulated annual loss ratio is still high: 107.6% compared to 10M21.
Finally, Credit and Guarantee earned, in the tenth month, revenue of R$ 584 million (+71.3%), the highest variation for the month of October since 2014. The Domestic Credit product was the main driver of this performance, with an increase of 97.1%. Year-to-date, the segment’s progress was 25%, with approximately R$ 4.6 billion. The loss ratio, in October, grew by 56.7 p.p., reaching 66.2% and, in 10M22, it was 34.4%, an increase of 15.8 p.p. compared to the same period in 2021.
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.
