The insurance market continues to rise and recorded a 25.5% increase in revenue in the third quarter of 2022, compared to the same period last year, reaching R$ 46.8 billion. This is shown by the 25th edition of the IRB+Market Bulletin, a monthly report from the IRB+Intelligence platform, produced based on data published on Oct/31 by Susep – the entity that regulates the sector. This was the quarter with the highest positive variation, with emphasis on the Rural and Automobile segments.
In September, the revenue of insurance companies reached 15.5 billion, a growth of 26.9% compared to the same period in 2021. In the 2022 year-to-date period, premiums written totaled R$ 126.7 billion, an increase of 21.7% on an annual basis, corresponding to R$ 22.6 billion more compared to the amount calculated between January and September 2021. The most pronounced variation occurred in the Rural segment.
The data also point to a decline in the loss ratio (claims that occurred on the revenue for the month) in September: a decline of 4.8 percentage points (p.p.) compared to the same month in 2021. When analyzing the third quarter, the sector recorded a drop of 8.4 percentage points (p.p.). The recovery of claims was mainly driven by the Life segment (-16 p.p.). In the year to date, in turn, the ratio grew 1.9 p.p. in relation to the rate recorded in the same period last year, mainly due to the Automobile segment, as it represents a relevant part of the market portfolio, and the Rural segment, due to the rate above 100%.
By segment
In September, Life recorded revenues of R$ 5.2 billion, a growth of 17.7%. In the year, the segment, which represents 33.7% of the total collected by the sector between January and September, totals R$ 42.7 billion (+12.6%). In 3Q22, the increase was 13.9%. Life and Loan insurances were the main responsible for this evolution. Another insurance that must be highlighted is Travel. Even with the low participation in the segment, only 1.4%, it has shown great growth compared to 2021, reaching 213.5% in the year.
The Automobile segment, on the other hand, recorded revenue of R$ 4.6 billion in September, an increase of 42.1% on an annual basis. In the 2022 year-to-date period, the segment grew 34.9% (R$ 37.1 billion) and 40.9% in the third quarter. The loss ratio in the segment was 72% in the nine months of the year, above the historical level, as the highest ratio recorded between 2014 and 2019 was 65.2%.
The Damage and Liability segment recorded revenues of R$ 2.5 billion in August (+22%) and R$ 22.8 billion (+18.5%) for the 2022 year-to-date period. In the third quarter, the segment increased 21.5%. The loss rate improved by 3.6 p.p., reaching 39.8% in the sum of the nine months of the year.
Individual against Damage reached, in September, R$ 1.2 billion (14.9%) in revenue. The year-to-date income for 2022 was R$ 9.5 billion (+9.6%). In the third quarter, the segment grew 11.1% compared to 3Q21. It is worth mentioning that the Comprehensive Home insurance product was primarily responsible for the evolution of the modality. In addition, from the historical analysis, it is possible to observe that since July 2020, almost all the months of the series showed a double-digit increase compared to the respective months of the previous year, as a reflection of social isolation, which forced families to remain more time in their homes and increased interest in this coverage.
Rural showed an advance of 35.6% in September, compared to the same month in 2021, when it earned R$ 1.5 billion. In the year to date, it reached R$ 10.6 billion and recorded a positive variation of 41.9%. Analyzing the third quarter, the modality grew 45.3% compared to 3Q21 and presented the highest nominal variation in the period. The third quarter of 2022 was the first period to record a decline in loss ratio: a drop of 52.9 p.p. However, year to date, the rate is still high: 118.8%, which is equivalent to an increase of 41.1 p.p. compared to 9M21. Claims incurred increased 112.4% and exceeded by R$2.6 billion the volume presented in the entire year of 2021.
Finally, Credit and Guarantee obtained, in September, revenues of R$ 497 million (+38.5%). Year to date, the segment’s progress was 20.2%, with approximately R$ 4 billion. With the highest quarterly growth in 2022, the segment advanced 27.3% compared to 3Q21. The products that most contributed to this progress were Guarantee Insured – Public Sector and Private Sector, which increased 16.9% and 65.5%, respectively. In the year-to-date period, even with the loss ratio below the historical average for the period (30.5%), the claims incurred already exceed by 74.5% the volume recorded in the same period of 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.
