From January to September 2021, the placement of insurance and surety premiums managed to return to the levels that were registered prior to the Covid-19 pandemic, according to information from the National Insurance and Surety Commission (CNSF).
In the “Analytical Panorama of the Insurance and Surety Sector”, the commission states that the gradual reopening of the Mexican economy, as well as the return to the so-called new normality, boosted the growth of the sector during the third quarter of 2021, which was 5.4% at an annual rate. By item, insurance grew 5.3%, while surety bonds 11.8 percent.
However, “the growth rate is three percentage points lower than that observed during the third quarter of 2019, which indicates that although the sector is in recovery, the growth dynamics are not yet at pre-pandemic levels,” he said. the CNSF.
In total, in the first nine months of last year the issuance of premiums was 494,000 million pesos, which is slightly above the 492,000 million pesos (constant prices) of 2019.
“The premium issuance is placed at the levels prior to the pandemic, the growth observed by the sector raised the direct premium to 494,000 million pesos, a figure that exceeds in real terms that observed in 2019 when the Petróleos policy was also negotiated Mexicans (Pemex) ”.
In the middle of last year, the Spanish insurer Mapfre won for the fourth consecutive time the public tender for Pemex’s biannual comprehensive damage policy, for 563 million dollars.
Pemex’s damage policy represents one of the most important businesses for the Mexican insurance sector. Every two years, the government launches the tender to protect the oil company from damages, as well as its subsidiaries, companies of the PMI group – Pemex’s commercial arm in the international market – and, where appropriate, its subsidiaries.
Employment outlook affects life insurance
Inside the report, the CNSF indicated that the labor outlook of last year, where fewer jobs and / or the quality of these had a negative impact on individual life insurance, a segment that decreased 4% in annual comparison, while group life insurance increased 3.6 percent.
In this way, the life insurance operation issued 192.1 billion pesos in direct premiums, which means a decrease of 1.8% per year. Even so, it continues to be the product that issues the most premiums.
Another segment that fell was the damage segment, which issued 174.8 billion pesos, 1.4% less than last year. This was due to a drop in auto damage insurance, of 2.4%, and of the others of 0.6 percent.
Meanwhile, the pension item had a relevant behavior since it issued 35,300 million pesos in the period, 69.4% more than last year. This, the commission explained, was due to the restart of activities, which increased the number of resolutions, that is, the conclusion of the process to receive a pension derived from social security.
In the case of surety bonds, 8.4 billion pesos were issued, 11.8% more than in the first nine months of 2020.
Reference-www.eleconomista.com.mx