The Chilean general insurance industry is projected to grow from CLP3.2 trillion (US$4 billion) in 2020 to CLP4.6 trillion (US$5.8 billion) in 2025, in terms of gross written premiums, according to GlobalData. Chile’s general insurance industry is expected to grow at a compound annual growth rate (CAGR) of 7.6 per cent over 2020-2025, supported by a faster economic recovery in the country post-pandemic.
Anjuli Srivastav, Insurance Analyst at GlobalData, commented: “The general insurance industry in Chile grew by seven per cent in 2020, driven by the growth of major insurance lines in business such as Property, Liability and Marine, Aviation and Transit. The country’s economy is expected to grow by 9.5 per cent in 2021, up from a forecast of 7.5 per cent in 2020, which is expected to further boost the country’s general insurance industry.”
Property insurance largest segment
Property insurance is the largest segment in the Chilean general insurance industry, accounting for 52.2 per cent of gross written premiums in 2020. The country’s vulnerability to natural hazards as well as the damages suffered due to the social unrest in October 2019 supported growth of the Fire and Natural Hazards insurance sub-segment, which grew by over 25 per cent in 2020.
“Increased government spending as well as a successful vaccine rollout are expected to provide a boost to the country’s economic recovery in 2021,” Srivastav said. “The government’s push for infrastructure expansion projects along with the country’s geographic factors are expected to create new business opportunities for general insurers over the next few years.”
Meanwhile, Chile is back on the agenda for tourists, too, after it reopened its borders to foreign visitors, allowing non-residents to travel for business or leisure.