Key Insights
The Uruguayan insurance market demonstrated robust growth in the year ending September 2024, with net issued premiums increasing by 30.8% compared to the previous year, reaching 83,184 million pesos. This growth was primarily driven by the life insurance segment, which expanded by 52%, while the non-life sector posted a steady 9% increase in premiums.
Despite higher net incurred claims, which rose by 38.4% to 59,540.84 million pesos, the market benefited from improvements in technical results. These rose to -3,012.06 million pesos, reflecting a significant recovery from the -4,121.78 million pesos recorded the previous year. Cost control efforts also played a role, with acquisition costs growing at a slower pace of 12.4%, while operating expenses increased by 13.3%.
Life insurance showed exceptional performance, driven by the 107% growth in life annuities and a 108% increase in health insurance. Non-life insurance continued to expand moderately, with credit and surety insurance leading the growth at 20% and 17%, respectively.
The technical recovery highlights a shift toward operational efficiency, despite rising claims and expenses. The combination of higher premium volumes and cost management strategies contributed to narrowing the technical deficit and stabilizing the financial outlook for insurers.
In terms of competition, BSE retained a dominant market position, capturing 73% of total market share in direct net premiums, 53.4% excluding annuities and over 85% of the life and annuities market. MAPFRE, SURA, PORTO, and ZURICH SANTANDER followed, each holding single-digit shares. BSE’s leadership extended across all major segments, including life, annuities, and non-life insurance.
The market's concentration remains high, with the top five insurers controlling over 90% of total premiums. Smaller players, classified as "Others," collectively held 8.4% of the market, underscoring limited diversification but highlighting potential opportunities for niche products or services.
Market Overview
By September 2024, the insurance market in Uruguay had grown significantly, with net issued premiums reaching 83,184 million pesos, a 30.8% increase from 63,591 million pesos in the same period of 2023. The life insurance segment experienced exceptional growth of 52%, driven by a 107% surge in life annuities, which alone accounted for 35,042 million pesos in premiums. Health insurance also performed strongly, with a 108% increase to 454 million pesos. Collective life insurance grew by 14% to 4,856 million pesos, while other life-related products declined sharply by 84%.
The non-life insurance segment recorded a moderate 9% growth in premiums, totaling 34,307 million pesos. Within this category, credit insurance saw the highest growth rate at 20%, followed by surety and miscellaneous lines, both increasing by 17%. Fire insurance premiums rose by 10%, while accident coverage grew by 6%, and engineering posted a modest 3% increase.
Net incurred claims increased by 38.4% year-over-year, totaling 59,540.84 million pesos. This rise reflects the growing scale of the market but also emphasizes the challenge of managing claims inflation. Acquisition costs rose by 12.4% to 10,560.57 million pesos, with commissions accounting for 8,142.61 million pesos, an 11.6% increase. Operating expenses also rose by 13.3%, reaching 11,337.99 million pesos.
Despite the rise in claims and costs, the market's technical result improved significantly, narrowing to -3,012.06 million pesos from -4,121.78 million pesos the previous year. This improvement indicates progress in balancing premium growth with cost and claims management.
The performance of life insurance products underpinned the market’s overall expansion. Life annuities and health insurance showed extraordinary growth, reflecting increased consumer demand for long-term financial security and healthcare coverage. On the other hand, non-life insurance products maintained steady growth, supported by demand for credit, surety, and property-related coverages.
The competitive landscape remains highly concentrated, with BSE dominating the market across all segments. BSE held a 73% share of net direct premiums and an even more commanding 85.8% share of the life and annuities segment. MAPFRE followed with a 6.2% total market share, while SURA, PORTO, and ZURICH SANTANDER accounted for 5.1%, 4.4%, and 2.9%, respectively.
In the life and annuities segment, BSE's dominance was particularly evident, with MAPFRE (3.2%), ZURICH SANTANDER (4.0%), METLIFE (2.4%), and PORTO (1.9%) trailing significantly. For non-life products, BSE again led with a 54.8% share, followed by MAPFRE (10.5%), SURA (10.3%), PORTO (7.9%), and SANCOR (4.2%).
The "Others" category of smaller insurers accounted for 8.4% of the total market, demonstrating limited diversification in competition. However, these smaller players represent opportunities for growth, particularly in underserved or niche areas.
As the market grows, challenges related to rising claims and acquisition costs remain. However, the strong performance in life and annuities, coupled with declining operating expenses, suggests that the Uruguayan insurance market is on a path of sustainable growth, supported by both consumer demand and operational efficiencies.