Insurance Brokers in Perú
Highest year-on-year market share growth ranking
According to our latest market research report, the volume of turnover of insurance brokers reached NS$ 894 million in 2022, a 6.3% increase compared to 2021, when it was NS$ 842 million. However, this growth was not evenly distributed among the different players in the market. The five largest insurance brokers by turnover, which together account for more than half of the market share, saw mixed results in their performance. MARSH PERU the leader of the sector, lost 3.8% of market share, followed by AON PERU which lost 0.6%. CONTACTO BROKERS the second largest broker, maintained its position with a negligible variation of -0.01% points. On the other hand, BROKERS FALABELLA and ARTHUR J. GALLAGHER PERU, ranked third and fourth respectively, gained 0.3% and 1.6% points of market share, showing a positive trend.
The profitability of the insurance brokers also varied according to their size and efficiency. The average proportion of labor costs with respect to sales volume was 41.9% in 2022, while the average proportion of net income with respect to sales volume was 11.9%. These ratios indicate that there is room for improvement in the cost structure and operational management of the brokers, especially for those with lower margins and higher expenses.
The level of market concentration remained high in 2022, as the first 10 brokers by turnover volume represented almost 59% of the sales volume, while the first 30 brokers accounted for more than 72%. The first 50 brokers reached almost 80% of the market share, leaving little space for smaller and new entrants.
In conclusion, the insurance sales channels in Peru showed a moderate growth in 2022, but also a high degree of heterogeneity and concentration among the different actors. The competitive dynamics and the profitability indicators suggest that there are opportunities and challenges for the insurance brokers to improve their performance and position in the market.
The profitability of the insurance brokers also varied according to their size and efficiency. The average proportion of labor costs with respect to sales volume was 41.9% in 2022, while the average proportion of net income with respect to sales volume was 11.9%. These ratios indicate that there is room for improvement in the cost structure and operational management of the brokers, especially for those with lower margins and higher expenses.
The level of market concentration remained high in 2022, as the first 10 brokers by turnover volume represented almost 59% of the sales volume, while the first 30 brokers accounted for more than 72%. The first 50 brokers reached almost 80% of the market share, leaving little space for smaller and new entrants.
In conclusion, the insurance sales channels in Peru showed a moderate growth in 2022, but also a high degree of heterogeneity and concentration among the different actors. The competitive dynamics and the profitability indicators suggest that there are opportunities and challenges for the insurance brokers to improve their performance and position in the market.