Insurance market grows 19.6% in the first half of 2022
Bulletin IRB+Mercado shows that insurance companies earned R$ 13.1 billion more in relation to the first six months of last year. Impacted by the Rural segment, the loss ratio grew 7.5 percentage points
The insurance market grew 19.6% in the first half of this year (1H22) compared to the same period in 2021, with revenues of R$ 80 billion. This is what the 22nd edition of the IRB+Mercado Bulletin shows, a monthly report of the IRB+Inteligência platform, produced based on data published by Susep on 08/01, the body that regulates the sector.
In the accumulated of 2022, insurers earned R$ 13.1 billion more than in the first six months of last year. The segments that contributed the most to the increase were Auto, Life and Injury and Liabilities, with R$5.5 billion, R$2.9 billion and R$2.2 billion more in revenue, respectively.
The data also point to an increase in the claims ratio (claims that occurred over the month’s revenue) in 1H22. The growth reached 7.5 percentage points (p.p.) in relation to the rate registered in the same period last year, largely impacted by the Rural segment, whose index evolved 92.4 p.p., and mitigated mainly by Life, which had to -17.8 p.p.
The IRB+Mercado Bulletin released today also brings data from June, when the insurance sector earned BRL 15.6 billion, an increase of 23.1% compared to the same month in 2021. There was nominal growth in all segments by second consecutive month, with emphasis on Rural with the highest increase, followed by Automobile. The loss ratio increased by 1.4 p.p. compared to June last year.
In June, Vida, which represents 34.2% of the total collected by the sector in the first six months of the year, recorded revenues of R$ 4.8 billion, up 10.3%. In the first half, it totals R$ 27.4 billion (+11.9%), with the Life product responsible for 64.6% of this progress. The loss ratio returned to the pre-pandemic level.
Automobile (28.6% of the market from January to June) recorded, in June, revenue of R$ 4.4 billion (+38.1%). In 2022, it registered R$ 22.9 billion, that is, an increase of 31.4%, the highest rate for the first six months of the year since the beginning of the historical series in 2014. The half-year loss ratio closed at 74.1%. .
On the other hand, the Damages and Liability segment (19.1% of the market from January to June) earned R$3.5 billion in June (+20.5%) and R$15.3 billion (+17.1%) in the accumulated in 2022. The loss ratio retracted 0.9 p.p., reaching 42.8%. Individuals against Damages (7.6% of the market from January to June) earned, in the sixth month of the year, R$ 1.1 billion (+15%). In the accumulated, R$ 6.1 billion (+8.8%). The claims rate was 38.8%, an increase of 8.3 p.p. compared to the first half of 2021.
Already Rural, which accounts for 7.2% of market revenue in the first half of the year, increased by 63.3% when it raised R$1.3 billion in June. In the accumulated, it reached R$ 5.7 billion and ended the semester with the biggest change: 39.1%. The good performance is influenced by the Federal Government’s subsidy program. For the second consecutive month, the loss ratio dropped from 80.3% to 76.3% when comparing June 2021 with June 2022. However, in the year, this rate is still high: 160.9%, due to to adverse weather conditions.
Finally, Credit and Guarantee (3.2% of the market from January to June) collected, in June, R$460 million (+2.9%). In the accumulated, the segment progress was 16.6% (R$ 2.6 billion) and the loss ratio was 24.7%, an increase of 6.2 p.p. compared to the 1H21 rate.
The IRB+Mercado Bulletin summarizes insurance operations, considering damage, liability and personal insurance. The edition also lists the top five insurance groups by line of business. The analysis is available, in full, on the IRB Brasil RE website. At the same address, the IRB+Mercado Segurador Dashboard allows dynamic and free consultation of information from the entire sector.