Direct written premiums in Ecuador
As of September 2023, the Ecuadorian insurance market has witnessed notable shifts in market dynamics, with certain insurers experiencing significant growth in their market share. Among the standout performers, LA UNIÓN demonstrated an impressive 3.18% interannual growth in its market share, reflecting a strategic positioning that has resonated well with consumers. BUPA ECUADOR, UNIDOS, INTEROCEANICA and CHUBB also showed positive trends, with 0.58%, 0.42%, 0.41% and 0.24% growth, respectively. These figures indicate a competitive landscape where insurers are actively vying for a larger slice of the market.
Examining the market from a coverage perspective reveals interesting trends. Non-life coverages, such as OIL RISKS (+84%), AGRICULTURAL (+21%), and FIRE (+13%), experienced double-digit growth, underscoring the diverse needs and risks faced by businesses and individuals. On the other hand, MOTOR INSURANCE showed a +7% YoY growth and challenges were noted in the MULTIRISK category, which saw a 5.21% contraction, highlighting potential areas for insurers to reassess and innovate in their offerings. In the same period, LIFE INSURANCE experienced a +14% average growth, while HEALTH showed +21% and GROUP LIFE +16%.
In terms of overall market performance, the Ecuadorian insurance sector saw a commendable 12.4% year-on-year increase in gross written premiums, reaching USD 1667 million. This growth was mirrored in key financial indicators, with the MARGIN OF CONTRIBUTION rising by 10.9% to USD 486 million. However, a notable uptick in the COST OF CLAIMS signals increased risk exposure for insurers, necessitating a careful balance between profitability and risk management.
Despite the positive financial metrics, the industry faced challenges in the form of a 25.7% decline in the RESULT OF INTERMEDIATION, reaching USD 69 million loss. This emphasizes the importance of efficiency and cost management in an environment where intermediation plays a crucial role in the distribution of insurance products.
Examining the market from a coverage perspective reveals interesting trends. Non-life coverages, such as OIL RISKS (+84%), AGRICULTURAL (+21%), and FIRE (+13%), experienced double-digit growth, underscoring the diverse needs and risks faced by businesses and individuals. On the other hand, MOTOR INSURANCE showed a +7% YoY growth and challenges were noted in the MULTIRISK category, which saw a 5.21% contraction, highlighting potential areas for insurers to reassess and innovate in their offerings. In the same period, LIFE INSURANCE experienced a +14% average growth, while HEALTH showed +21% and GROUP LIFE +16%.
In terms of overall market performance, the Ecuadorian insurance sector saw a commendable 12.4% year-on-year increase in gross written premiums, reaching USD 1667 million. This growth was mirrored in key financial indicators, with the MARGIN OF CONTRIBUTION rising by 10.9% to USD 486 million. However, a notable uptick in the COST OF CLAIMS signals increased risk exposure for insurers, necessitating a careful balance between profitability and risk management.
Despite the positive financial metrics, the industry faced challenges in the form of a 25.7% decline in the RESULT OF INTERMEDIATION, reaching USD 69 million loss. This emphasizes the importance of efficiency and cost management in an environment where intermediation plays a crucial role in the distribution of insurance products.
