Five companies control 80% of the insurance market
SD. In the insurance market of the Dominican Republic there are 39 companies operating, but this diversity of participants hides the high concentration of their operations, where five insurance companies receive more than 80% of the premiums collected.
In this market the unquestioned leader is Universal, with 25% of the premiums collected during the period between January and October 2013.
Universal is followed a little further away by Mapfre BHD, which has 16.57% of the premiums, after surpassing Banreservas which in 2012 collected 16.6% of the premiums but later went down during the first 10 months of last year to 15.45%.
In the country, Mapfre BHS is tied to the BHD Financial Center. Last December, this entity and the Banco Leon announced the fusion of all of their financial operations. One of the branches of the Banco Leon is Banca Seguros (Insurance), which offers services of life insurance, auto, business and a variety of personal insurance policies. It is possible to speculate that this fusion will concentrate even more the insurance market in the Dominican Republic and bring Mapfre Insurance closer to the leader of the sector, Universal Insurance.
As of the close of this edition, the Superintencency of Insurance has updated some information of the sector as of November 2013. According to the regulatory agency, between January and November of last year, the net premiums collected by the 39 insurance companies reached RD$27.768 billion, which compared to the same period the year before represents an increase of 4.83%.
Nonetheless, this is a sector whose growth, calculated by the premiums collected, has been between 8% and 20% over the years between 2006 and 2012, which has allowed during those six years, that the amount collected by these companies to reach RD$177.259 billion.
During 2013, the branch of general insurance, which includes fire, vehicles, freight, bonds and so forth, represented 75% of the premiums and with respect to 2012 it grew by 2.84%. Within this branch are the policies for farm and livestock insurance in which they collected a little more than RD$99.5 million, although with respect to 2012, this amount represents a 49.11% growth.
Another group of policies is made up of individual life, collective life, health and personal accidents.
In those branches, the total growth was 16.82%. The area of health insurance grew by 21.83% being, after farm insurance, the second biggest growth.
The Superintendent of Insurance, Euclides Gutierrez Felix, in a communique published on the webpage of the entity, stated that the net premiums collected during 2013 were RD$30.5 billion which is RD$1.352 more than was collected in 2012.
In the note moreover, Gutierrez alludes to alleged “permanent acid attacks”, pointing out that the insurance sector has kept it strength and solidity, an achievement he attributes to his management within this agency.
Category: DR News |