Latin America - Q1 2013


Insurance Risk/Reward Ratings

Table: Argentina ' s Insurance Risk/Reward Ratings
Data Sub-rating score, out of 10 Rating score, out of 100
Rewards 52.1
Industry rewards 57.5
- N on-life 67.5
Non-life premiums, 2012, US$mn11,569.36.0 
Non-life premium increase, 2012-2016, US$mn8,973.88.0 
Non-life penetration, 2012,%2.25.0 
Measure of openness8.0 
-Life   47.5
Life premiums, 2012, US$mn2,984.23.0 
Life premium increase, 2012-2016, US$mn2,476.06.0 
Life penetration, 2012,%0.62.0 
Measure of openness8.0 
Country rewards   44.1
GDP per capita, 2012, US$10,024.17.0 
Active population, 2012, % of total64.87.0 
Tax regime0.7
GDP volatility2.0
Financial infrastructure5.3
Risks 59.4
Regulatory framework   70.0
Regulatory framework and development8.0
Regulatory framework and competitive landscape6.0
Country risks   52.4
Long-term financial risk2.6
Long-term external risk7.3
Long-term policy continuity7.0
Legal framework3.9
Bureaucracy5.4
Insurance Risk/Reward Rating 54.3
Source: BMI

The Insurance Risk/Reward Rating (RRR) takes into account objective measures of the current state and long-term potential of both the non-life and life segments. It also takes into account an assessment of the openness of each segment to new entrants and economic conditions. Collectively, these measures enable an objective assessment of the limits to potential returns across all countries over time.

The ratings also incorporate an objective assessment of the risks to the realisation of returns. The risk assessment is based on BMI's Country Risk ratings, and is a subjective assessment of the impact of the regulatory regime on the development and the competitive landscape of the insurance sector.

Table: Latin America Insurance Risk/Reward Ratings
Rewards Risks Overall risk/reward rating
Industry Rewards - Non-Life Industry Rewards - Life Country Rewards Regulatory Framework Country Risks Insurance RRR Regional Rank
Bermuda97.5080.0068.0095.0072.6780.801
Brazil70.0047.5079.0095.0063.3369.602
Barbados80.0070.0057.6070.0066.4567.993
Chile50.0060.0073.0970.0082.6366.844
Bahamas50.0050.0066.7995.0083.3566.105
Mexico62.5060.0057.5575.0063.6662.306
Colombia52.5042.5062.7970.0061.0856.937
Argentina 67.50 47.50 44.10 70.00 52.41 54.33 8
Trinidad32.5025.0069.0265.0073.1452.379
Peru37.5030.0060.8565.0060.6749.9310
Panama42.5015.0050.6665.0055.5144.0511
Costa Rica15.0012.5060.0770.0062.6742.2712
Jamaica25.0017.5052.1870.0046.2640.2613
Dominican Republic20.000.0048.1275.0049.6035.6014
Venezuela32.502.5042.7745.0030.8730.2815
Scores out of 100, with 100 the best. Source: BMI
This article is tagged to:
Sector: Insurance
Geography: Latin America, Argentina, Brazil, Mexico

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