The insurance market closed 2020 presenting an increase. The issued premiums – that is, insurers’ revenue – summed up BRL11.5 billion in December 2020, 11.2% higher than the last month of 2019. Such data, disclosed today (February 22nd) by the IRB+Mercado Newsletter, a release in Portuguese by IRB Brasil RE’s data service, IRB+Inteligência, also indicates that insurers accumulated BRL123.8 billion in 2020, a 5.5% growth in comparison with the previous year.
For Lucas Mello, from IRB+Inteligência, the result shows the insurance sector’s resilience even in an atypical year: “The data for 2020, when showing that the sector’s revenue has increased for the seventh consecutive month in a hard year, reinforces that the market is strong and meets its role, contributing for the economic recovery.”
The IRB+Mercado newsletter also shows that the insurers’ claims rate, in December 2020, increased by 3.5 percent in comparison with the last month of 2019. On the other hand, considering the accumulation for the last year, the rate of expenses for claims regarding the monthly revenue dropped 1.1%. In total, around 40% of the insurer groups presented a growth in the issued premiums when comparing 2020 and 2019.
Despite the Life sector representing 37% of the sector’s revenue, summing BRL4.2 billion in December 2020 – an increase of 4.7% in comparison with the same period in 2019 -, the Rural and Corporate Damages and Liabilities sectors were the ones showing the highest increases since 2015: 30.3% and 14.9%, respectively. Another positive variation took place in the Credit and Guarantee sector, which accumulated BRL434 million, in December, and closed the year with 10.6% increase.
About the IRB+Mercado Newsletter and IRB+Mercado Dashboard
The IRB+Mercado Newsletter summarizes the insurance and reinsurance operations based on the public data made available by Susep, focusing on damages, liability and personal insurance. The analysis, published on a monthly basis, is completely available on the company’s website (wwww.irbre.com). On the same page, IRB also offers an interactive data dashboard, allowing for dynamic data consultation. IRB+Mercado Segurador Dashboard, as it is known, was developed by the reinsurer, it is free and easy to use, providing information from the entire sector.