Life Insurance in Venezuela, Key Trends and Opportunities to 2017

Transcription

1 Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Market Intelligence Report Reference code: IS0467MR Published: December Timetric John Carpenter House 7 Carmelite Street London EC4Y 0BS United Kingdom Tel: +44 (0) Fax: +44 (0)

2 EXECUTIVE SUMMARY 1 Executive Summary The life segment accounted for the lowest share of the Venezuelan insurance industry during the review period ( ). It did, however, register significant growth, which indicates an increase in public awareness of the benefits of life insurance. Funeral insurance, which was made compulsory for retirees, pensioners, the disabled and low-income families, also contributed to the growth. The life segment posted a review-period CAGR of 26.6%. Regulatory changes and an increase in consumer confidence will support growth over the forecast period ( ); the segment is expected post a forecast-period CAGR of 27.6%. Life insurance in Venezuela is predominantly distributed through agencies and brokers. Agencies accounted for 46.9% and brokers for 32.7% of the segment s overall new business written premiums in The segment is expected to reach a projected value of VEF6.9 billion (US$0.5 billion) in 2017, due to gradual growth in purchasing power and public awareness. Compulsory life insurance Regulatory changes made some classes of insurance compulsory. In the life segment, funeral insurance was made mandatory for retirees, pensioners, the disabled and low-income families. This is expected to drive growth and increase penetration rates. People aged over 65 years accounted for around 6% of the total population in 2012 and a large proportion of the country s demographic are low-income families. Low life insurance penetration At 0.12% in 2012, Venezuelan life insurance has one of the lowest penetration rates in Latin America, which provides growth opportunities over the forecast period. New legislation which makes funeral insurance mandatory is expected to stabilize penetration rates. Due to the low penetration rate, foreign insurers are expected to enter the segment, which will increase competition. Growth of bancassurance Bancassurance is expected to post a forecast-period CAGR of 28.0% in terms of new business written premium. However, growth is expected to be restricted by a change in the regulatory framework limiting the use of banks as distribution channels. The channel s market share is, however, expected to increase at the expense of direct marketing and other distribution channels, whose share is expected to decline over the forecast period, while bancassurance s share is expected to increase from 5.9% to 6.4%. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 2

3 1 Executive Summary Introduction What is this Report About? Definitions Methodology Regional Market Dynamics Overview Market trends Market size Life Insurance Segment Regional Benchmarking Scale and Penetration Total gross written premium Premium per capita Life insurance penetration (as a percentage of GDP) Growth Gross written premium Gross written premium per capita Efficiency and Risk Loss ratio Combined ratio Incurred losses per capita Incurred losses as a percentage of GDP Distribution Channels Direct marketing Bancassurance Agencies Venezuelan Insurance Industry Attractiveness Insurance Industry Size, Key Industry Trends and Drivers Life Insurance Outlook Life Insurance Growth Prospects by Category Individual life insurance Individual general annuity insurance Other individual life insurance Group life insurance Life Insurance Growth Prospects by Product Type Individual single-premium policies Individual non-single-premium policies Group single-premium policies Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 3

4 6.2.4 Group non-single-premium policies Analysis by Distribution Channel Direct Marketing Bancassurance Agencies E-Commerce Brokers Other Channels Porter s Five Forces Analysis Venezuelan Life Insurance Bargaining Power of Supplier: Medium Bargaining Power of Buyer: Medium to High Barriers to Entry: Medium to High Intensity of Rivalry: High Threat of Substitutes: Low Reinsurance Growth Dynamics and Challenges Reinsurance Segment Size, Reinsurance Segment Size by Type of Insurance, Regulatory Policies Competitive Landscape and Strategic Insights Overview Leading Companies in the Venezuelan Life Insurance Segment Comparison of Top Five Insurers Gross written premium Paid claims Incurred Loss Seguros Horizonte CA Company Overview Seguros Horizonte CA key facts Seguros Horizonte CA key financials Seguros la Fe CA Company Overview Seguros la Fe CA Key Facts Seguros la Fe CA key financials Zurich Seguros SA Company Overview Zurich Seguros, SA key facts Zurich Seguros, SA key financials Banesco Seguros CA Company Overview Banesco Seguros CA key facts Banesco Seguros CA key financials Seguros Mercantil CA Company Overview Seguros Mercantil CA key facts Seguros Mercantil CA key financials Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 4

5 11.9 Seguros Provincial CA Company Overview Seguros Provincial CA key facts Seguros Provincial CA key financials CNA de Seguros La Previsora Company Overview CNA de Seguros La Previsora key facts CNA de Seguros La Previsora key financials CA de Seguros La Occidental Company Overview CA de Seguros La Occidental key facts CA de Seguros La Occidental key financials Mapfre La Seguridad CA de Seguros Company Overview Mapfre La Seguridad CA de Seguros key facts Mapfre La Seguridad CA de Seguros key financials Seguros Caracas de Liberty Mutual, CA Company Overview Seguros Caracas de Liberty Mutual, CA key facts Seguros Caracas de Liberty Mutual, CA key financials Business Environment and Country Risk Business Confidence Market capitalization trend Bolsa de Valores de Caracas, Venezuela Economic Performance GDP at constant prices (US$) GDP per capita at constant prices (US$) GDP at current prices (US$) GDP per capita at current prices (US$) GDP by key segments Agriculture net output at current prices (US$) Agricultural net output at current prices as a percentage of GDP Manufacturing net output at current prices (US$) Manufacturing net output at current prices as a percentage of GDP Mining, manufacturing and utilities at current prices (US$) Mining, manufacturing and utilities at current prices, as percentage of GDP Construction net output at current prices, (US$) Construction net output at current prices as a percentage of GDP Inflation rate Exports as a percentage of GDP Imports as a percentage of GDP Exports growth Imports growth Annual average exchange rate VEF US$ Infrastructure Quality and Availability Commercial vehicles exports total value Commercial vehicles imports total value Automotive exports total value Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 5

6 Automotive imports total value Total internet subscribers Labor Force Labor force Unemployment rate Demographics Gross national disposable income (US$) Household consumption expenditure (US$) Total population Urban and rural populations Age distribution of the total population Appendix Methodology Contact Timetric About Timetric Timetric s Services Disclaimer Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 6

7 LIST OF FIGURES Figure 1: Central and Latin America A Snapshot of the Economies and Populations, Figure 2: Central and Latin America Growth Trends in the Insurance Industry Figure 3: Central and Latin America Total Industry Values by Segment (US$ Billion), Figure 4: Central and Latin American Life Insurance Gross Written Premiums (US$ Billion), Figure 5: Central and Latin American Life Insurance Premium Per Capita (US$), Figure 6: Central and Latin American Life Insurance Penetration as a Percentage of GDP (%), 2011 and Figure 7: Central and Latin American Life Insurance Gross Written Premium Growth (%), Figure 8: Central and Latin American Life Insurance Gross Written Premium Per Capita Growth (%), Figure 9: Central and Latin American Life Insurance Loss Ratios (%), 2011 and Figure 10: Central and Latin American Life Insurance Combined Ratios (%), 2011 and Figure 11: Central and Latin American Life Insurance Incurred Losses Per Capita (US$), 2011 and Figure 12: Central and Latin American Life Insurance Incurred Losses as a Percentage of GDP (%), 2011 and Figure 13: Central and Latin American Direct Marketing Share of Life Insurance New Business Gross Written Premium (%), Figure 14: Central and Latin American Bancassurance Share of Life Insurance New Business Gross Written Premium (%), Figure 15: Central and Latin American Agencies Share of Life Insurance New Business Gross Written Premium (%), Figure 16: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), Figure 17: Venezuelan Insurance Dynamics by Segment (%), Figure 18: Venezuelan Life Insurance Written Premium by Category (VEF Million), Figure 19: Venezuelan Life Insurance Written Premium by Category (Percentage Share), 2012 and Figure 20: Venezuelan Life Insurance Dynamics by Category, Figure 21: Venezuelan Life Insurance Earned Premium (VEF Million), Figure 22: Venezuelan Life Insurance Earned Premium (VEF Million), Figure 23: Venezuelan Life Insurance Sum Assured (VEF Billion), Figure 24: Venezuelan Life Insurance Sum Assured (VEF Trillion), Figure 25: Venezuelan Life Insurance Paid Claims (VEF Million), Figure 26: Venezuelan Life Insurance Paid Claims (VEF Million), Figure 27: Venezuelan Life Insurance Incurred Loss (VEF Million), Figure 28: Venezuelan Life Insurance Incurred Loss (VEF Million), Figure 29: Venezuelan Life Insurance Loss Ratio (%), Figure 30: Venezuelan Life Insurance Loss Ratio (%), Figure 31: Venezuelan Life Insurance Commissions and Expenses (VEF Million), Figure 32: Venezuelan Life Insurance Commissions and Expenses (VEF Million), Figure 33: Venezuelan Life Insurance Combined Ratio (%), Figure 34: Venezuelan Life Insurance Combined Ratio (%), Figure 35: Venezuelan Life Insurance Frauds and Crimes (VEF Million), Figure 36: Venezuelan Life Insurance Frauds and Crimes (VEF Million), Figure 37: Venezuelan Life Insurance Total Assets (VEF Million), Figure 38: Venezuelan Life Insurance Total Assets (VEF Million), Figure 39: Venezuelan Life Insurance Total Investment Income (VEF Million), Figure 40: Venezuelan Life Insurance Total Investment Income (VEF Million), Figure 41: Venezuelan Life Insurance Retentions (VEF Million), Figure 42: Venezuelan Life Insurance Retentions (VEF Million), Figure 43: Venezuelan Life Insurance Investment Portfolio (VEF Million), Figure 44: Venezuelan Life Insurance Investment Portfolio, 2008 and Figure 45: Venezuelan Life Insurance Penetration (%), Figure 46: Venezuelan Life Insurance Density (Number of Policies per Capita), Figure 47: Venezuelan Life Insurance Number of Active Policies (Thousand), Figure 48: Venezuelan Life Insurance Number of Active Policies (Thousand), Figure 49: Venezuelan Life Insurance Premium Per Capita (VEF), Figure 50: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), Figure 51: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), Figure 52: Venezuelan Individual Life Insurance Written Premium (VEF Million), Figure 53: Venezuelan Individual Life Insurance Written Premium (VEF Million), Figure 54: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), Figure 55: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), Figure 56: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), Figure 57: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), Figure 58: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), Figure 59: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), Figure 60: Venezuelan Other Individual Insurance Written Premium (VEF Million), Figure 61: Venezuelan Other Individual Insurance Written Premium (VEF Million), Figure 62: Venezuelan Group Life Insurance Number of Active Policies (Thousand), Figure 63: Venezuelan Group Life Insurance Number of Active Policies (Thousand), Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 7

8 Figure 64: Venezuelan Group Life Insurance Written Premium (VEF Million), Figure 65: Venezuelan Group Life Insurance Written Premium (VEF Million), Figure 66: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), Figure 67: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), Figure 68: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), Figure 69: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), Figure 70: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 71: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 72: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), Figure 73: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), Figure 74: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), Figure 75: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), Figure 76: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), Figure 77: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), Figure 78: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 79: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), Figure 80: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), Figure 81: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), Figure 82: Venezuelan Life Insurance New Business Written Premium by Distribution Channel (Percentage Share), 2012 and Figure 83: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), Figure 84: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), Figure 85: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), Figure 86: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), Figure 87: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), Figure 88: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), Figure 89: Venezuelan Life Insurance Number of Direct Marketing Distributors, Figure 90: Venezuelan Life Insurance Number of Direct Marketing Distributors, Figure 91: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), Figure 92: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), Figure 93: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), Figure 94: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), Figure 95: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), Figure 96: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), Figure 97: Venezuelan Life Insurance Number of Bancassurance Distributors, Figure 98: Venezuelan Life Insurance Number of Bancassurance Distributors, Figure 99: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), Figure 100: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), Figure 101: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), Figure 102: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), Figure 103: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), Figure 104: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), Figure 105: Venezuelan Life Insurance Number of Agencies, Figure 106: Venezuelan Life Insurance Number of Agencies, Figure 107: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), Figure 108: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), Figure 109: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), Figure 110: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), Figure 111: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), Figure 112: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), Figure 113: Venezuelan Life Insurance Number of E-Commerce Distributors, Figure 114: Venezuelan Life Insurance Number of E-Commerce Distributors, Figure 115: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), Figure 116: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), Figure 117: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), Figure 118: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), Figure 119: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), Figure 120: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), Figure 121: Venezuelan Life Insurance Number of Brokers, Figure 122: Venezuelan Life Insurance Number of Brokers, Figure 123: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), Figure 124: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), Figure 125: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), Figure 126: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), Figure 127: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), Figure 128: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), Figure 129: Venezuelan Life Insurance Number of Distributors in Other Channels, Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 8

9 Figure 130: Venezuelan Life Insurance Number of Distributors in Other Channels, Figure 131: Venezuelan Life Insurance Porter s Five Forces Analysis Figure 132: Venezuelan Premium Ceded to Reinsurance by Category (VEF Billion), Figure 133: Venezuelan Premium Ceded to Reinsurance by Category (Percentage Share), 2012 and Figure 134: Venezuelan Reinsurance Dynamics by Category (%), Figure 135: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), Figure 136: Venezuelan Reinsurance Dynamics by Type of Insurance (%), Figure 137: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), Figure 138: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), Figure 139: Shares of Key Insurers in the Venezuelan Life Insurance Segment (%), Figure 140: Gross Written Premium Top Five Venezuelan Life Insurers, Figure 141: Paid Claims Top Five Venezuelan Life Insurers, Figure 142: Incurred Loss Top Five Venezuelan Life Insurers, Figure 143: Venezuelan Stock Exchange Market Capitalization (US$ Billion), Figure 144: Venezuelan GDP at Constant Prices (US$ Billion), Figure 145: Venezuelan GDP Per Capita at Constant Prices (US$), Figure 146: Venezuelan GDP at Current Prices (US$ Billion), Figure 147: Venezuelan GDP Per Capita at Current Prices (US$), Figure 148: Venezuelan GDP by Key Segments (%) 2007 and Figure 149: Venezuelan Agriculture Net Output At Current Prices (US$ Billion), Figure 150: Venezuelan Agricultural Net Output at Current Prices as a Percentage of GDP (%), Figure 151: Venezuelan Manufacturing Net Output at Current Prices (US$ Billion), Figure 152: Venezuelan Manufacturing Net Output at Current Prices as a Percentage of GDP (%), Figure 153: Venezuelan Mining, Manufacturing and Utilities Net Output at Current Prices (US$ Billion), Figure 154: Venezuelan Mining, Manufacturing and Utilities Net Output at Current Prices as a Percentage of GDP (%), Figure 155: Venezuelan Construction Net Output at Current Prices (US$ Billion), Figure 156: Venezuelan Construction Output at Current Prices as a Percentage of GDP (%), Figure 157: Venezuelan Inflation Rate (%), Figure 158: Venezuelan Exports as a Percentage of GDP (%), Figure 159: Venezuelan Imports as a Percentage of GDP (%), Figure 160: Venezuelan Exports Growth (%), Figure 161: Venezuelan Imports Growth (%), Figure 162: Venezuelan Annual Average Exchange Rate US$ PHP, Figure 163: Venezuelan Commercial Vehicles Exports Total Value (US$ Billion), Figure 164: Venezuelan Commercial Vehicles Imports Total Value (US$ Billion), Figure 165: Venezuelan Automotive Exports Total Value (US$ Billion), Figure 166: Venezuelan Automotive Imports Total Value (US$ Billion), Figure 167: Venezuelan Internet Subscriptions (Millions), Figure 168: Venezuelan Size of Labor Force (Million), Figure 169: Venezuelan Unemployment Rate (%), Figure 170: Venezuelan Gross National Disposable Income (US$ Billion), Figure 171: Venezuelan Household Consumption Expenditure (US$ Billion), Figure 172: Venezuelan Total Population (Million), Figure 173: Venezuelan Urban and Rural Populations (%), Figure 174: Venezuelan Population Distribution by Age (%), Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 9

10 LIST OF TABLES Table 1: Insurance Industry Definitions Table 2: Central and Latin America Insurance Penetration as a Percentage of GDP (%), Table 3: Central and Latin America Life Expectancy (Years), 2007, 2011 and Table 4: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), Table 5: Venezuelan Insurance Overall Written Premium by Segment (US$ Billion), Table 6: Venezuelan Insurance Overall Written Premium by Segment (VEF Billion), Table 7: Venezuelan Insurance Overall Written Premium by Segment (US$ Billion), Table 8: Venezuelan Insurance Segmentation (Percentage Share), Table 9: Venezuelan Life Insurance Written Premium by Category (VEF Million), Table 10: Venezuelan Life Insurance Written Premium by Category (US$ Million), Table 11: Venezuelan Life Insurance Written Premium by Category (VEF Million), Table 12: Venezuelan Life Insurance Written Premium by Category (US$ Million), Table 13: Venezuelan Life Insurance Earned Premium (VEF Million), Table 14: Venezuelan Life Insurance Earned Premium (VEF Million), Table 15: Venezuelan Life Insurance Sum Assured (VEF Billion), Table 16: Venezuelan Life Insurance Sum Assured (VEF Trillion), Table 17: Venezuelan Life Insurance Paid Claims (VEF Million), Table 18: Venezuelan Life Insurance Paid Claims (VEF Million), Table 19: Venezuelan Life Insurance Incurred Loss (VEF Million), Table 20: Venezuelan Life Insurance Incurred Loss (VEF Million), Table 21: Venezuelan Life Insurance Loss Ratio (%), Table 22: Venezuelan Life Insurance Loss Ratio (%), Table 23: Venezuelan Life Insurance Commissions and Expenses (VEF Million), Table 24: Venezuelan Life Insurance Commissions and Expenses (VEF Million), Table 25: Venezuelan Life Insurance Combined Ratio (%), Table 26: Venezuelan Life Insurance Combined Ratio (%), Table 27: Venezuelan Life Insurance Frauds and Crimes (VEF Million), Table 28: Venezuelan Life Insurance Frauds and Crimes (VEF Million), Table 29: Venezuelan Life Insurance Total Assets (VEF Million), Table 30: Venezuelan Life Insurance Total Assets (VEF Million), Table 31: Venezuelan Life Insurance Total Investment Income (VEF Million), Table 32: Venezuelan Life Insurance Total Investment Income (VEF Million), Table 33: Venezuelan Life Insurance Retentions (VEF Million), Table 34: Venezuelan Life Insurance Retentions (VEF Million), Table 35: Venezuelan Individual Life Insurance Number of Active Policies (Thousand), Table 36: Venezuelan Individual Life Insurance Number of Active Policies, Table 37: Venezuelan Individual Life Insurance Written Premium (VEF Million), Table 38: Venezuelan Individual Life Insurance Written Premium (VEF Million), Table 39: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), Table 40: Venezuelan Individual General Annuity Insurance Number of Active Policies (Thousand), Table 41: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), Table 42: Venezuelan Individual General Annuity Insurance Written Premium (VEF Million), Table 43: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), Table 44: Venezuelan Other Individual Insurance Number of Active Policies (Thousand), Table 45: Venezuelan Other Individual Insurance Written Premium (VEF Million), Table 46: Venezuelan Other Individual Insurance Written Premium (VEF Million), Table 47: Venezuelan Group Life Insurance Number of Active Policies (Thousand), Table 48: Venezuelan Group Life Insurance Number of Active Policies (Thousand), Table 49: Venezuelan Group Life Insurance Written Premium (VEF Million), Table 50: Venezuelan Group Life Insurance Written Premium (VEF Million), Table 51: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), Table 52: Venezuelan Individual Single-Premium Insurance Number of Active Policies (Thousand), Table 53: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), Table 54: Venezuelan Individual Single-Premium Insurance Written Premium (VEF Million), Table 55: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Table 56: Venezuelan Individual Non-Single-Premium Insurance Number of Active Policies (Thousand), Table 57: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), Table 58: Venezuelan Individual Non-Single-Premium Insurance Written Premium (VEF Million), Table 59: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), Table 60: Venezuelan Group Single-Premium Insurance Number of Active Policies (Thousand), Table 61: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), Table 62: Venezuelan Group Single-Premium Insurance Written Premium (VEF Million), Table 63: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 10

11 Table 64: Venezuelan Group Non-Single-Premium Insurance Number of Active Policies (Thousand), Table 65: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), Table 66: Venezuelan Group Non-Single-Premium Insurance Written Premium (VEF Million), Table 67: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), Table 68: Venezuelan Life Insurance Direct Marketing Commission Paid (VEF Million), Table 69: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), Table 70: Venezuelan Life Insurance New Business Written Premium Through Direct Marketing (VEF Million), Table 71: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), Table 72: Venezuelan Life Insurance New Policies Sold Through Direct Marketing (Thousand), Table 73: Venezuelan Life Insurance Number of Direct Marketing Distributors, Table 74: Venezuelan Life Insurance Number of Direct Marketing Distributors, Table 75: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), Table 76: Venezuelan Life Insurance Bancassurance Commission Paid (VEF Million), Table 77: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), Table 78: Venezuelan Life Insurance New Business Written Premium Through Bancassurance (VEF Million), Table 79: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), Table 80: Venezuelan Life Insurance New Policies Sold Through Bancassurance (Thousand), Table 81: Venezuelan Life Insurance Number of Bancassurance Distributors, Table 82: Venezuelan Life Insurance Number of Bancassurance Distributors, Table 83: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), Table 84: Venezuelan Life Insurance Commission Paid to Agencies (VEF Million), Table 85: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), Table 86: Venezuelan Life Insurance New Business Written Premium Through Agencies (VEF Million), Table 87: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), Table 88: Venezuelan Life Insurance New Policies Sold Through Agencies (Thousand), Table 89: Venezuelan Life Insurance Number of Agencies, Table 90: Venezuelan Life Insurance Number of Agencies, Table 91: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), Table 92: Venezuelan Life Insurance E-Commerce Commission Paid (VEF Million), Table 93: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), Table 94: Venezuelan Life Insurance New Business Written Premium Through E-Commerce (VEF Million), Table 95: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), Table 96: Venezuelan Life Insurance New Policies Sold Through E-Commerce (Thousand), Table 97: Venezuelan Life Insurance Number of E-Commerce Distributors, Table 98: Venezuelan Life Insurance Number of E-Commerce Distributors, Table 99: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), Table 100: Venezuelan Life Insurance Commission Paid to Brokers (VEF Million), Table 101: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), Table 102: Venezuelan Life Insurance New Business Written Premium Through Brokers (VEF Million), Table 103: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), Table 104: Venezuelan Life Insurance New Policies Sold Through Brokers (Thousand), Table 105: Venezuelan Life Insurance Number of Brokers, Table 106: Venezuelan Life Insurance Number of Brokers, Table 107: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), Table 108: Venezuelan Life Insurance Commission Paid to Other Channels (VEF Million), Table 109: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), Table 110: Venezuelan Life Insurance New Business Written Premium Through Other Channels (VEF Million), Table 111: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), Table 112: Venezuelan Life Insurance New Policies Sold Through Other Channels (Thousand), Table 113: Venezuelan Life Insurance Number of Distributors in Other Channels, Table 114: Venezuelan Life Insurance Number of Distributors in Other Channels, Table 115: Venezuelan Reinsurance by Category (VEF Billion), Table 116: Venezuelan Reinsurance by Category (US$ Billion), Table 117: Venezuelan Reinsurance by Category (VEF Billion), Table 118: Venezuelan Reinsurance by Category (US$ Billion), Table 119: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), Table 120: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), Table 121: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (VEF Billion), Table 122: Venezuelan Premium Ceded to Reinsurance by Type of Insurance (US$ Billion), Table 123: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), Table 124: Venezuelan Life Insurance Percentage of Reinsurance Ceded (%), Table 125: Shares of Key Insurers in the Venezuelan Life Insurance Segment (%), Table 126: Seguros Horizonte CA, Key Facts Table 127: Seguros Horizonte CA, Key Financials (VEF Million), Table 128: Seguros la Fe CA, Key Facts Table 129: Seguros la Fe CA, Key Financials (VEF Million), Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 11

12 Table 130: Zurich Seguros SA, Key Facts Table 131: Zurich Seguros SA, Key Financials (VEF Million), Table 132: Banesco Seguros CA, Key Facts Table 133: Banesco Seguros CA, Key Financials (VEF Million), Table 134: Seguros Mercantil CA, Key Facts Table 135: Seguros Mercantil CA, Key Financials (VEF Million), Table 136: Seguros Provincial CA, Key Facts Table 137: Seguros Provincial CA, Key Financials (VEF Million), Table 138: CNA de Seguros La Previsora, Key Facts Table 139: CNA de Seguros La Previsora, Key Financials (VEF Million), Table 140: CA de Seguros La Occidental, Key Facts Table 141: CA de Seguros La Occidental, Key Financials (VEF Million), Table 142: Mapfre La Seguridad CA de Seguros, Key Facts Table 143: Mapfre La Seguridad CA de Seguros, Key Financials (VEF Million), Table 144: Seguros Caracas de Liberty Mutual, CA, Key Facts Table 145: Seguros Caracas de Liberty Mutual, CA, Key Financials (VEF Million), Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 12

13 INTRODUCTION 2 Introduction 2.1 What is this Report About? This report is the result of extensive research into the life insurance segment in Venezuela, covering its dynamics and competitive landscape. It provides insights into the size and forecast for the overall life insurance segment, and categories such as individual and group insurance, and provides details of products in each category. This report also provides an overview of the leading companies in the life insurance segment, along with details of strategic initiatives undertaken. 2.2 Definitions All data is collected in local currency. Conversions into US dollars (US$) of current and forecast data are made at the 2012 average annual conversion rate. Most values are displayed to one decimal place. As such, growth rates may appear inconsistent with absolute values due to rounding. For the purposes of this report, the review period is and the forecast period is The key insurance industry terms covered in the report are defined below: Table 1: Insurance Industry Definitions Term Ceding company Incurred loss Claim ratio Definition A primary insurer that transfers some of its insurance risk by ceding a proportion of its total written premium through a reinsurance contract. The sum of claims paid by an insurance company and the change in the provision for outstanding claims irrespective of whether or not they have been reported. Claims payable as a percentage of premium income. Commission and expenses Comprehensive loss ratio Earned premium Endowment policy Facultative reinsurance Gross claim Gross written premium Group annuity Insurance density and penetration Insurance fraud The sum of acquisition cost and administrative cost. The acquisition cost is the percentage of a premium produced that is retained as compensation by insurance agents and brokers. The ratio of claims incurred to net premium earned. The amount of money considered to have been earned on a policy by an insurer. It is calculated by multiplying the original premium by the percentage of the policy s term which has expired without a claim being made. A scheme in which the term of the policy is defined for a specified period, such as 15, 25 or 30 years. The insurer pays the claim to the family of the assured in an event of his or her death within the policy's term or in an event of the assured surviving the policy's term. An arrangement for separate reinsurance for each risk that the primary insurer underwrites. The reinsurer can accept or reject any risk presented by the primary insurer seeking reinsurance. The amount payable by an insurance company before allowances is made for credits that may be due in the form of reinsurance, subrogation or salvage. The total amount of premiums (before deduction of reinsurance costs) customers are required to pay for insurance policies written during the year. A life insurance scheme providing annuities at retirement to a group of people under a single contract. It is usually bought by an employer for the benefit of its employees. The percentage of total written premium to the country s GDP. Any act committed with the intent to obtain payment from an insurer through fraudulent means. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 13

14 INTRODUCTION Table 1: Insurance Industry Definitions Term Lapsed policy Definition A policy that is terminated due to the non-payment of the premium. Loss ratio Liability insurance The ratio of total losses paid out in the form of claims plus adjustment expenses divided by the total earned premium. A type of insurance that covers legal claims by third parties against the insured. Loss reserve The estimated amount of claims incurred but not yet settled. Maturity claim The payment made to a policyholder at the end of the stipulated term of a term life insurance policy. Per capita premium The ratio of the total written premium to the country s total population. Premium ceded The share of premiums transferred to a reinsurance company by a primary insurer. Single-premium life insurance policy A life insurance scheme in which a lump sum is paid into the policy in return for an assured sum of money in the event of the policyholder s death. Term insurance A life insurance scheme that provides protection for a specified period, usually between five and 20 years. The policy expires without value if the insured survives the stated period. Treaty reinsurance Direct marketing E-commerce A reinsurance agreement applying to the reinsurance of a class or some classes of business, instead of an individual risk. Direct Marketing channels for insurance policies include insurance companies sales forces, telemarketing, postal mail, , call centers and mobile phones. The distribution of insurance policies online through a company or third-party website. Agencies Insurance brokers Bancassurance Other distribution channels Source: Timetric analysis Individuals and corporate agencies which are licensed to sell insurance for one or more specific insurance companies. Individuals or businesses which sell insurance policies, and advise and represent the policyholder. They differ from insurance agents, which act on the behalf of an insurance company. The partnership between a bank and an insurance company in which the insurance company uses the bank s sales channel to sell insurance. Other distribution channels include post offices, convenience stores, multi-level marketing, any channel other than agencies, direct marketing, bancassurance and the above-mentioned channels. Timetric Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 14

15 INTRODUCTION 2.3 Methodology All Timetric insurance reports are created by following a comprehensive, four-stage methodology. This includes market study, research, analysis and quality control. 1) Market Study A. Standardization Definitions are specified using recognized industry classifications. The same definition is used for every country. Annual average currency exchange rates are used for the latest completed year. These are then applied across both the historical and forecast data to remove exchange rate fluctuations. B. Internal audit Review of in-house databases to gather existing data: Historic market databases and reports Company database C. Trend monitoring Review of the latest insurance companies and industry trends 2) Research A. Sources Collection of the latest market-specific data from a wide variety of industry sources: Government statistics Industry associations Company filings International organizations Insurance regulatory agencies B. Expert opinion Collation of opinion taken from leading insurance industry experts Analysis of third-party opinion and forecasts: Broker reports Media Official government sources C. Data consolidation and verification Consolidation of data and opinion to create historical datasets Creation of models to benchmark data across sectors and regions 3) Analysis A. Market forecasts Feeding forecast data into market models: Macroeconomic indicators Industry-specific drivers Analysis of insurance industry database to identify trends: Latest insurance trends Key drivers of the insurance industry Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 15

16 INTRODUCTION B. Report writing Analysis of market data Discussion of company and industry trends and issues Review of financial deals and insurance trends 4) Quality Control Templates Detailed process manuals Standardized report templates and accompanying style guides Complex forecasting tools to ensure that forecast methodologies are consistently applied Quality-control checklists Quality-control process Peer review Senior-level QC Random spot checks on data integrity Benchmark checks across databases Market data cross-checked for consistency with accumulated data from: Company filings Government sources Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 16

17 APPENDIX 3 Appendix 3.1 Methodology Timetric s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting and advanced statistical expertise. Timetric adheres to the Codes of Practice of the Market Research Society ( and the Society of Competitive Intelligence Professionals ( All Timetric databases are continuously updated and revised. 3.2 Contact Timetric If you have any queries about this report, or would like any further information, please contact info@timetric.com. 3.3 About Timetric Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and comment. Timetric helps over 1,500 financial services institutions and their partner companies around the world benefit from better, timelier decisions. Timetric provides: High-quality data including proprietary, specialized industry data, survey-based research, social media monitoring, macroeconomic data and forecasts Expert analysis from experienced economists and analysts, who use robust proprietary models, indices and forecasts Powerful proprietary visualization and workflow technologies developed over years of extensive investment Timetric has office locations in London, New York, San Francisco, Hyderabad, Seoul, Singapore and Sydney. It employs 500 people, including 150 analysts and economists, and 200 professional researchers. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 17

18 APPENDIX 3.4 Timetric s Services Intelligence Centers Timetric s industry intelligence centers are premium web-based services that provide access to interactive tools, comprehensive research and expert analysis in key sectors. They provide invaluable decision support presented in an easily digestible format and grounded in deep research. Timetric offers Intelligence Centers covering the following industries: Banking Insurance Wealth Construction Travel and Tourism Briefing Services Timetric offers a range of briefing services, which offer cutting-edge thought leadership and expert commentary on and for the financial services industries. Driven by influential and respected editorial teams with years of experience in their respective fields, these services deliver need-to-know insight and analysis to decision makers across the financial services value chain. Timetric offers briefing services covering the following financial sectors: Consultancy Accountancy Asset Finance Banking Cards and Payments Insurance Timetric specializes in the development and delivery of innovative research solutions that are designed to provide competitive advantage and profitability to clients. Dedicated industry analysts and economists provide expert advice and actionable recommendations underpinned by Timetric s market and country knowledge, experience and proprietary databases, panels and research infrastructure. For projects requiring quantitative data, Timetric undertakes special research projects using its in-house panels and survey technology. These provide ready access to an extensive source of specialist business executives and consumers. Core capabilities are: Economic Research and Consulting Highly experienced economists provide a number of bespoke research services covering subjects ranging from macroeconomic forecasting to sector outlooks, business presentations and workshops. Industry Analysis and Consulting Information analysis, independent expert opinion and advice, facilitated decision or strategic support, are provided by Timetric s extensive body of proprietary data and analysis models. It provides expertisebased consulting to deliver solutions that best suit its clients requirements. Quantitative Research Timetric connects with thousands of potential customers for various markets every day. Using sophisticated, interactive and highly engaging graphical surveys, research speed is increased and costs reduced, while ensuring that respondents deliver the insight needed. Life Insurance in Venezuela, Key Trends and Opportunities to 2017 Page 18