Allianz predicts Brazilian insurance industry will see significant growth this year
Allianz, Europe’s largest insurance organization, has high hopes for the insurance industry in Brazil. The country boasts of one of the most promising insurance markets in the world, partly due to an expanding economy and the relatively low number of natural disasters it has seen over the past year. Brazil has begun investing heavily in its infrastructure, especially where electrical power is concerned. The country has been showing strong support for renewable energy, but still maintains a reliance on fossil-fuels, with the oil industry beginning to expand operations within Brazil’s borders.
Government efforts concerning infrastructure will raise demand for insurance coverage
Allianz predicts significant growth for the Brazilian insurance industry as the country continues to expand its infrastructure. The organization estimates that the insurance industry within the country will see a 12% increase annually as the government continues working to improve the country’s infrastructure and as the country continues to be a favorable market for the oil industry. Allianz is currently providing reinsurance coverage to the state-run Petroleo Brasileiro SA, a multi-national energy corporation that is based in Rio de Janeiro.
Allianz has high hopes for Brazilian insurance industry
Liabilities coverage is on the rise in Brazil as much of the country’s resources are located inland and need to be transported to the sea. The government plans to auction concessions for ports, airports, and roads later this year as preparation for the World Cup in 2014 and the Olympic Games in 2016. The country’s efforts could be a major boon for Allianz plans to increase policy sales in emerging markets around the world. The insurer wants to see more than $458.4 million in policy sales coming from South America by 2015, and Brazil will account for approximately half of those sales.
Allianz aims to reduce sales in US and Europe over the next five years
The global insurance industry has been seeing promising growth in several markets. The growth of the insurance industry is partly due to the expanding economies in countries like Brazil. Relatively lax natural disasters have also contributed to growth in certain markets. The U.S. and European markets have been experiencing some degree of turmoil due to natural disasters and financial crisis, and Allianz aims to reduce the sales in makes in these markets within the next five years.