Mexican Insurance Industry Market Opportunities for US Firms - Mexico is the second largest insurance market in Latin America after Brazil. At the end of 2007, the insurance industry was comprised of 95 companies, six of which are part of larger financial groups and 46 foreign subsidiaries with authorization to operate in Mexico.
Foreign subsidiaries enjoy 59% market share of direct premiums while Mexican-owned insurers have 41% of the market. According to AMIS (Mexican Association of Insurance Services), insurance services have until now experienced low market penetration in Mexico, representing only 1.9 percent of the total GDP, in comparison with England, which represents 12%, U.S.A. 9% and 4% in Chile.
Nevertheless, the insurance sector represents a huge potential market for several small, niche insurance products, such as education, transportation and natural hazard products, which offer substantive opportunities for U.S. firms in this growing market. |
