Insurance market grows 19.6% in the first half of 2022

Publicado em: 09/08/2022

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The insurance market grew 19.6% in the first half of this year (1H22) compared to the same period in 2021, with revenues of R$ 80 billion. This is shown by the 22nd edition of the IRB+Market Bulletin, a monthly report from the IRB+Intelligence platform, produced based on data published by Susep on 08/01, the entity that regulates the sector.

For the 2022 year-to-date period, insurers earned R$ 13.1 billion more than in the first six months of last year. The segments that contributed the most to the increase were Auto, Life and Damage and Liabilities, with R$ 5.5 billion, R$ 2.9 billion and R$ 2.2 billion more in revenue, respectively.

The data also show an increase in the loss ratio (claims that occurred over the month’s revenue) in 1H22. The growth reached 7.5 percentage points (p.p.) in relation to the rate registered in the same period last year, largely impacted by the Rural segment, with a ratio that evolved 92.4 p.p., and mitigated mainly by Life, which recorded -17.8 p.p.

The IRB+Market Bulletin released today also brings data from June, when the insurance sector earned R$ 15.6 billion, an increase of 23.1% compared to the same month in 2021. There was nominal growth in all segments for the second consecutive month, with emphasis on Rural with the highest increase, followed by Auto. The loss ratio increased by 1.4 p.p. compared to June last year.

By segment

In June, Life, which represents 34.2% of the total collected by the sector in the first six months of the year, recorded revenues of R$ 4.8 billion, a growth of 10.3%. In the first half, it totals R$ 27.4 billion (+11.9%), with the Life product accounting for 64.6% of this progress. The loss ratio returned to the pre-pandemic level.

Auto (28.6% of the market from January to June) recorded, in June, revenue of R$ 4.4 billion (+38,1%). For the 2022 year-to-date period, it recorded R$ 22.9 billion, that is, an increase of 31.4%, the highest rate for the first six months of the year since the beginning of the historical series in 2014. The half-year loss ratio closed at 74.1%.

The Damage and Liability segment (19.1% of the market from January to June) recorded revenues of R$ 3.5 billion in June (+20.5%) and R$ 15.3 billion (+17.1%) for the 2022 year-to-date period. The loss ratio retracted 0.9 p.p., reaching 42.8%.

Individual against Damage (7.6% of the market from January to June) earned, in the sixth month of the year, R$ 1.1 billion (+15%). For the year-to-date period, R$ 6.1 billion (+8.8%). The loss rate was 38.8%, an increase of 8.3 p.p. compared to the first half of 2021.

Rural, on the other hand, which accounts for 7.2% of the market’s revenue in the first half of the year, recorded a raise of 63.3% when it earned R$ 1.3 billion in June. For the year-to-date period, it reached R$ 5.7 billion and closed the semester with the biggest variation: 39.1%. The good performance is influenced by the Federal Government’s subsidy program. For the second consecutive month, the loss rate dropped from 80.3% to 76.3% when comparing June 2021 with June 2022. However, for the year to date, this rate is still high: 160.9%, due to adverse weather conditions.

Finally, Credit and Guarantee (3.2% of the market from January to June) earned, in June, R$ 460 million (+2.9%). For the year to date, the segment progress was 16.6% (R$ 2.6 billion) and the loss ratio was 24.7%, an increase of 6.2 p.p. compared to the 1H21 rate.

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.

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