The insurance market in Nicaragua has shown a steady reliance on intermediary channels, particularly brokers and individual agents, who play a central role in premium generation. In the first half of 2024, the total volume of premiums intermediated by brokers reached 3,034 million Córdobas, up from 2,826 million in the same period in 2023. This represents a year-over-year growth of 7.3% in the broker channel, which continues to dominate the market in terms of volume. Individual brokers, though handling a smaller portion of the market, exhibited remarkable growth, increasing their intermediated premium volume from 106 million to 127 million Córdobas—a significant 20.1% rise compared to the previous year.
Intermediated premium volume - YoY% - Agents & Brokers
This trend reflects the growing importance of specialized and personalized service within the insurance sector, as evidenced by the notable expansion among individual brokers. While the overall market saw an average growth rate of 7.8% in premiums intermediated, individual brokers outpaced this benchmark, showcasing an upward trajectory in demand for tailored insurance solutions. This increase may indicate a shift towards more client-centered approaches, likely catering to specific needs that larger brokers may not address as directly.
In terms of market share evolution, a handful of broker firms emerged as clear leaders in terms of growth. Risk Managers led the charge with a substantial 4.79% increase in its market share, indicating a successful strategy in client acquisition or portfolio expansion. Following Risk Managers, Advisers Corredores de Seguros achieved a 1.21% market share increase, and CAPESA captured an additional 0.97%. Corredores de Seguros Nicaragüenses and Assurance each saw a growth of 0.45% in market share, rounding out the list of firms with notable market gains. These firms have likely capitalized on strategic initiatives, such as enhancing client retention, expanding service portfolios, or intensifying market penetration efforts.
The structure of Nicaragua’s insurance intermediary market is relatively concentrated, with 104 brokers and intermediaries currently operating. The top 10 brokers account for 49.27% of the total intermediated premium volume, illustrating a concentrated market where leading players hold substantial influence. Expanding this scope slightly, the top 20 brokers hold a combined market share of 67.55%, further underscoring the competitive landscape dominated by a core group of leaders.
These dynamics highlight the influence of the largest brokers, yet also signal opportunities for smaller or emerging players to innovate and capture segments underserved by established firms. Given the significant year-over-year increase in premiums handled by individual brokers, this sector could continue to draw interest from firms aiming to tap into niches that benefit from more individualized attention. As the industry progresses, both large and small firms will likely focus on strategies to enhance customer engagement and market reach in an evolving insurance landscape in Nicaragua.
