The experts and executives expectations were confirmed. The insurance market recorded an increase in revenues(premiums issued)for the sixth consecutive month. Last November, growth was 10% compared to the same period in 2019, adding up to around R$ 10.5 billion. Such encouraging data are included in the IRB + Mercado Bulletin, a report released earlier this year by IRB + Inteligência, the reinsurer’s data intelligence service. (IRB Brasil RE)
Between January and November 2020, accumulated growth reached 4.9%, which means R$ 112.2 billion in premiums written in insurance. Responsible for 37% of the market total sales, the Life Insurance segment showed a positive variation of 4.2% in the comparison between the accumulated of 2020 and 2019: increase of R$ 1.6 billion. Only in November, the turnover of this branch reached R$ 4 billion.
The index that measures the proportion between the expenses with claims incurred and the revenue allocated last November increased by 4.3 percentage points in comparison with November 2019. However, in the accumulated result for the year, according to the aforementioned Bulletin, the claim ratio presented improves with the decrease of 1.6 percentage point.
“November was another exceptional month for the insurance market. Revenue grew 10%, confirming the trend of macroeconomic improvement in the country ”, evaluates the CEO and Chairman of the Board of Directors of IRB Brasil RE, Antonio Cassio dos Santos. This Bulletin summarizes insurance and reinsurance operations based on public data made available by Susep at the end of December, with a focus on damage, liability and personal insurance. The third edition also lists the five largest insurance groups by business line.

Segment analysis

1. Life insurance: monthly revenue of R$ 4 billion. Responsible for 37% of the insurance market’s revenue, the segment had a 4.2% variation in the comparison of the accumulated of 2020 compared to 2019, with an increase of R$ 1.6 billion in revenue due mainly to the evolution of Individual Life followed by the Collective Loan payments. The figures do not take into account DPVAT, Accumulation, Health and Capitalization Bonds operations.
2. Automobile insurance: monthly revenue of R$ 3 billion. Despite successive growth in the last three months of the series, vehicle insurance closed the year with a 3.1% drop in revenue. In compensation for the retraction in billing in the period, expenses with claims occurred decreased and led the market to the best historic mark in the Automobile Claims Index: 53.8%.
3. Corporate damage and liability insurance without agri, credit and surety: monthly revenue of R$ 1.7 billion. The segment registered an increase of 7.8% in November in relation to November 2019 and closed the year with a variation of 15.5%. The branches that contributed most to this evolution were Named and Operational Risks and Oil Risks.
4. Individual insurance against damage without automobiles: revenue in the month of R$ 956 million. Year-to-date, revenue in this segment expanded by only 1.3%, mainly due to the poor sales performance in April, May and June, reflecting the social isolation imposed by the pandemic. It should be noted that, in the last three months series, changes in sales reached double digits. The branch that most benefited the performance of this segment, which includes insurance on the assets of individuals and small and medium-sized companies, was the Lease Insurance with a 74.4% growth in the accumulated for the year and on an upward trajectory started in 2017.
5. Agri insurance: revenue in the month of R $ 581 million. In November 2020, the segment maintained the robust growth of the previous months with a variation of 35.2% in relation to November 2019. In the accumulated result for the year, the segment assumed the position of protagonist and evolved 31.6%, with an increase of R$ 1.6 billion in revenue, sustaining and preserving the country’s largest economic activity.
6. Credit insurance and surety: revenue in the month of R$ 301 million. In November, the segment decreased 1.4% in comparison with the same month of 2019, however, due to the good performance in the previous two months (sept and oct), it closed the accumulated of the year with variation of 8.2%, justified, mainly, for the performance of the Surety Insurance – Private Sector and Internal Credit branches, in that order.