The data and analytics company noted that such growth will be driven by large infrastructure and construction projects, frequent occurrence of natural catastrophic events, and an increase in demand for health insurance policies due to the Covid-19 pandemic.
Rakesh Raj, Senior Insurance Analyst at GlobalData, commented: “Mexico’s general insurance industry saw a 17.8-per-cent recovery in 2021 after a Covid-19-related slowdown in 2020. With large infrastructure projects on the way, and more people taking out health insurance policies, the industry now looks poised for a steady performance over the next few years.”
GlobalData noted that Mexico’s general insurance industry growth will be led by property and personal accident and health (PA&H) insurance lines. PA&H insurance is the largest general insurance line in Mexico, accounting for a 31.3-per-cent share of the GWP in 2021, while property insurance held a 21.1-per-cent share. The PA&H segment grew by 19.3-per-cent in 2021, driven by the rising demand for health following increased awareness due to the pandemic.
Raj continued: “Even though Mexico has universal health coverage for basic insurance needs, there is a growing demand for private health insurance due to its better coverage and access to a wider network of specialists and care centres. The PA&H segment is forecast to grow at a CAGR of 8.1 per cent during 2021-26.
“Meanwhile, increased frequency of natural catastrophic events is driving demand for property insurance, which is forecast to grow at a CAGR of 10.6 per cent over 2021-26. In 2021, the total economic loss due to the catastrophic events such as earthquake, floods, droughts, frequent hurricanes and extreme winter weather was around $4.5 billion, thereby driving the demand for property insurance.”