During 2021, the profits of insurance companies reported an annual decrease of 28.6% and closed at 38,000 million pesos, this was mainly driven by the increase in the net cost of claims, which reached 356,000 million pesos, which in real terms represented a growth of 7.4%, according to data from the National Insurance and Bond Commission (CNSF).
According to the report Timely Performance of the Insurance and Bonds Sector As of the fourth quarter of 2021, the decrease in profit is related to the 99.7% drop in profits from the accident and illness line.
The decrease of 12,000 million pesos in profit for the year compared to 2020 is due to the increase in the net cost of claims, which increased by 47,000 million pesos, going from 309,000 to 356,000 million pesos in 2021.
“At the operating level, the fall is mainly due to life and accidents and illnesses, which presented a growth in the cost of claims of 6.1% and 16.4%, respectively,” reported the insurance regulator.
Given this, the insurance sector reduced its operating expenses by 11%, mainly in fees for professional services, which fell by 22 percent.
Recently the Mexican Association of Insurance Institutions (AMIS), reported that since the start of the pandemic have paid 56,150 million pesos between life insurance and medical expenses, which positions the Covid-19 as the most expensive claim in history of the insurance sector in Mexico.