Commissions to insurance agents and brokers in Mexico
Highest year-on-year market share growth ranking
The insurance distribution channels market in Mexico has shown a positive performance in the first quarter of 2023. The commissions paid to insurance agents and brokers increased by 10.5% compared to the same period of 2022, reaching a total of 17,486 million pesos.
The main drivers of this growth were the business lines of life, health and motor insurance, which accounted for 62.1% of the total commissions. Among them, individual life insurance had the highest annual growth rate of 12.7%, followed by health insurance with 13.9% and motor insurance with 12.9%. These three lines also had the highest commissions in absolute terms, with 3,604 million, 5,202 million and 3,793 million pesos respectively.
Other business lines that showed significant growth rates were life others (106.8%), earthquake (44%), agricultural (46.2%) and surety (31.2%). However, their share in the total commissions was relatively low. The only business line that registered a negative growth rate was group life insurance, which decreased by 4.4% and represented 13.8% of the total commissions.
The data also revealed the ranking of the insurers with the highest year-on-year market share growth in terms of commissions paid to agents and brokers. The leader was QUALITAS, with a growth of 0.78%, followed by GRUPO NACIONAL PROVINCIAL, with 0.61%, HIR SEGUROS, with 0.42%, SEGUROS ATLAS, with 0.38% and HDI SEGUROS, with 0.33%.
The main drivers of this growth were the business lines of life, health and motor insurance, which accounted for 62.1% of the total commissions. Among them, individual life insurance had the highest annual growth rate of 12.7%, followed by health insurance with 13.9% and motor insurance with 12.9%. These three lines also had the highest commissions in absolute terms, with 3,604 million, 5,202 million and 3,793 million pesos respectively.
Other business lines that showed significant growth rates were life others (106.8%), earthquake (44%), agricultural (46.2%) and surety (31.2%). However, their share in the total commissions was relatively low. The only business line that registered a negative growth rate was group life insurance, which decreased by 4.4% and represented 13.8% of the total commissions.
The data also revealed the ranking of the insurers with the highest year-on-year market share growth in terms of commissions paid to agents and brokers. The leader was QUALITAS, with a growth of 0.78%, followed by GRUPO NACIONAL PROVINCIAL, with 0.61%, HIR SEGUROS, with 0.42%, SEGUROS ATLAS, with 0.38% and HDI SEGUROS, with 0.33%.
Insurance distribution channels in Mexico - Overview
Insurance distribution channels are the ways in which insurance products are sold to customers. In Mexico, there are different types of insurance distribution channels, each with its own characteristics, advantages and challenges. In this article, we will describe the main insurance distribution channels that exist in Mexico and how they have evolved over time.
One of the most traditional and dominant insurance distribution channels in Mexico is the "Agents and brokers" channel. Agents and brokers are intermediaries who sell insurance products on behalf of one or more insurance companies. They receive commissions for their sales and provide advice and service to their clients. Agents and brokers can be individuals or corporations, and they can specialize in certain lines of business or segments of the market.
Another important insurance distribution channel in Mexico is the Bancassurance channel. Bancassurance is the sale of insurance products through banks or other financial institutions. Bancassurance allows banks to offer a wider range of products and services to their customers, while insurance companies can benefit from the banks' large customer base and distribution network. Bancassurance can be done through different models, such as joint ventures, strategic alliances or white label products.
One of the most traditional and dominant insurance distribution channels in Mexico is the "Agents and brokers" channel. Agents and brokers are intermediaries who sell insurance products on behalf of one or more insurance companies. They receive commissions for their sales and provide advice and service to their clients. Agents and brokers can be individuals or corporations, and they can specialize in certain lines of business or segments of the market.
Another important insurance distribution channel in Mexico is the Bancassurance channel. Bancassurance is the sale of insurance products through banks or other financial institutions. Bancassurance allows banks to offer a wider range of products and services to their customers, while insurance companies can benefit from the banks' large customer base and distribution network. Bancassurance can be done through different models, such as joint ventures, strategic alliances or white label products.
A third insurance distribution channel in Mexico is the payroll deduction channel. Payroll deduction is the sale of insurance products through employers, who deduct the premiums from their employees' salaries. Payroll deduction is usually done for life, health and personal accident insurance products. Payroll deduction can offer convenience, affordability and social benefits to both employers and employees.
A fourth insurance distribution channel in Mexico is the direct sales channel. Direct sales is the sale of insurance products directly from the insurance company to the customer, without any intermediary. Direct sales can offer lower costs, faster processes and more customization to customers, while insurance companies can have more control over their pricing and marketing strategies. There are also other channels that have a smaller share of the market, such as mass sales, microcredit, car dealerships, retailers and other alliances.
The Mexican insurance market is dynamic and competitive, and it is constantly evolving to adapt to the changing needs and preferences of customers. Insurance distribution channels are an essential part of this evolution, as they determine how insurance products are delivered and perceived by customers.