The insurance market grew 20.2% in July compared to the same period in 2021, with revenues of R$ 14.9 billion. This is shown by the 23rd edition of the IRB+Market Bulletin, a monthly report from the IRB+Intelligence platform, as disclosed today (09/28), and produced based on data published by Susep – the entity that regulates the sector – on 09/12. In the year 2022 to date, insurance companies recorded revenue of R$ 94.9 billion, an increase of 19.7% compared to the same period last year.
The data also show a decrease in the loss ratio (claims that occurred over the month’s revenue) in July. There was a decrease of 12.6 percentage points (p.p.) compared to the same month in 2021. The recovery was driven by Rural (-105.3 p.p.), Life (-21.3 p.p.) and Corporate Damage and Liability (-8.1 p.p.), which offset the growth of the rate in the other segments. Year-to-date, the index grew 4.5 p.p. compared to the rate recorded in the same period last year, mainly impacted by Rural (63.1 p.p.).
By segment
In July, Life, which represents 33.8% of the total collected by the sector in the first seven months of the year, recorded revenues of R$ 4.7 billion, a growth of 6.6%. In the year, it totals R$ 32.1 billion (+11.1%), with emphasis on Life and Travel products, which increased 16.4% and 226.9%, respectively. The loss ratio until July registered a drop of 18.4 p.p. and, as a result, it reached 32.2%, returning to the historic level prior to the impacts of covid-19.
Responsible for 47.6% of the growth in the insurance market in July, Auto grew 35.2% compared to the same month of the previous year. In the seventh month of the year, it recorded revenues of R$ 4.6 billion (+35.2%) and R$ 27.5 billion year-to-date. The accumulated loss ratio for the year was 73.1%, reaching the highest rate since the beginning of the historical series, in 2014, as a reflection of the high prices of products.
The Damage and Liability segment recorded revenues of R$ 2.5 billion in July (+15.7%) and R$ 17.8 billion (+16.9%) for the 2022 year-to-date period. The loss ratio retracted 1.9 p.p., reaching 41.7%. Individual against Damage earned R$ 1.1 billion (+6.9%) in the seventh month of the year. For the year-to-date period, R$ 7.2 billion (+8.5%). The loss ratio was 38.4% in July, an increase of 8.2 p.p. compared to the same period of 2021.
Rural raised 48% when it recorded revenues of R$ 1.6 billion in July. In the year to date, it reached R$ 7.3 billion and recorded a variation of +40.9%. It was the best evolution of the sector in both scenarios. The high growth rate reflects the volume directed to the Rural Insurance Premium Subsidy Program (PSR). The claims that occurred in the month decreased by 56%, however, the growth reached 146.5% in the year-to-date period, with an impact on the loss ratio: 144.7% in the 7M22.
Finally, Credit and Guarantee obtained, in July, revenues of R$ 490 million (+27.7%). Year-to-date, the segment’s progress was 18.2%, with R$ 3.1 billion. The loss ratio, despite having increased by 5.9 p.p. compared to the first seven months of 2021, is below the historical average: 25.3%.
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.
