Key Insights
The insurance distribution landscape in Argentina is undergoing notable shifts, with variations across different sales channels. In the Non-Life insurance sector, brokers experienced the highest growth increasing by 1.3% to account for 27.8% of total sales, while direct sales declined by 2.4%, now representing 13.3% of the market. Agents of insurance remain the dominant channel, capturing 49.9% of the Non-Life market and growing at a modest rate of 0.8% over the last year.
In the Life insurance segment, direct sales showed the most significant expansion, growing by 2.0% and commanding 44.1% of the market. Conversely, traditional intermediaries such as brokers and agents saw declining volume, with brokers dropping by 1.1% to 13.8% and agents decreasing by 0.9% to 23.0%. Bancassurance also experienced a minor reduction of 0.6%, holding a 14.3% share.
Looking at the total insurance market, agents of insurance maintain their leadership as the primary sales channel, with a 46.4% market share and a 0.7% increase in sales. Brokers follow with a solid 26.0% share and a 1.2% growth rate. Meanwhile, bancassurance shows a slight increase to 6.6%, while direct sales continue to decline, down by 2.1% to a total share of 17.3%.
Alternative partnerships remain a minor but stable distribution channel, with a small presence in both Non-Life (3.5%) and Life (4.8%) insurance. The overall market for these alliances remains at 3.7% of total insurance sales, showing a slight contraction of 0.3%.
These trends highlight a continued reliance on intermediated sales, with agents and brokers consolidating their positions in the insurance ecosystem, while direct sales face ongoing challenges, particularly in the Non-Life segment.
Market Overview
The Argentine insurance market is witnessing significant changes in the way insurance is distributed among different sales channels. Traditional distribution models, particularly agents of insurance and brokers, continue to hold the largest share of premiums, while direct sales have seen a decline in the Non-Life segment but are gaining traction in Life insurance.
In the Non-Life insurance sector, which represents a large portion of the industry, agents of insurance remain the dominant force, accounting for 49.9% of the market and experiencing a modest growth of 0.8% over the past year. Brokers follow as the second most relevant distribution channel, growing at a rate of 1.3% and capturing 27.8% of the market. Bancassurance, often seen as a growing force in other Latin American markets, showed a smaller expansion of 0.7%, reaching a 5.5% market share. Direct sales, however, suffered a contraction of 2.4%, reducing their presence to 13.3%, while other alliances remained relatively stagnant at 3.5%.
In contrast, the Life insurance segment exhibited a different trend. Direct sales gained significant momentum, increasing by 2.0% and now holding a 44.1% market share, demonstrating the growing preference for digital and direct-to-consumer channels in this category. Agents of insurance and brokers, traditionally key players, saw declines of 0.9% and 1.1%, respectively, now holding 23.0% and 13.8% of the market. Bancassurance also faced a slight contraction, dropping by 0.6% to a total share of 14.3%, while other alliances grew modestly by 0.5% to reach 4.8%.
When considering the overall insurance market in Argentina, agents of insurance continue to lead with a 46.4% share, experiencing a moderate 0.7% growth. Brokers remain the second most relevant channel, growing by 1.2% and holding 26.0% of the market. Bancassurance follows with 6.6%, expanding slightly by 0.5%. However, direct sales continue their downward trend, declining by 2.1% and now representing 17.3% of the market. Other alliances, maintaining a minor role, hold 3.7% of total insurance sales but have slightly contracted by 0.3%.
The shifts observed in the insurance distribution landscape indicate a gradual transition toward more professionalized intermediary channels, with brokers and agents continuing to thrive despite the increasing presence of digital sales. The decline in direct sales within the Non-Life segment suggests that policyholders still value advisory services when purchasing coverage, whereas the Life insurance market appears to be embracing direct channels more readily. Meanwhile, bancassurance remains a stable but secondary channel, reflecting its limited expansion compared to other Latin American markets where it has seen stronger growth.
Overall, the Argentine insurance market is evolving, with intermediated distribution channels remaining dominant, while digitalization continues to impact Life insurance sales. The challenges for direct sales in Non-Life suggest that insurers may need to refine their strategies to compete effectively with established brokers and agents. The coming years will determine whether bancassurance and alternative partnerships can carve out a larger share of the market or if the traditional sales channels will continue to dominate.