He the insurance market presented better indicators of both in 2022 for sale and delinquency. The economic reactivation, lower accident rate and Seguros Sucre’s exit from the market These would be the main reasons, according to data from the Ecuadorian Federation of Insurance Companies (Fedeseg).

According to the report of these insurance companies, net premium (total sales) issued by him in 2022 28 existing insurers in the country was 2.007 million dollars. The figure is 25% higher than the $1,606 achieved in 2021. That’s about $451 million more year-over-year.

How was this cake shared?

The map of insurers has changed after the departure of Sucre, a state-owned insurer that occupied an important market in the public sector and is in forced liquidation.

IN And ranking Of the 10 companies in which it is determined which have given higher net premiums, their growth is also visible. Those who grew the most It is public knowledge that they managed to conclude contracts with a wide public sector. Among them are, for example, Hispana, Aseguradora del Sur and Latina.

Net premium in millions of dollars in 2021 in 2022 Variation
Equinoctial 231 229 -0.5%
pichincha 160 217 35.1%
Chubb 168 191 13.5%
spanish 93 170 82%
Southern Underwriter 87 131 51.2%
Metropolitan AIG 107 122 13.5%
Zurich 97 120 23.8%
Latin 80 115 43.3%
Ecuadorian Swiss 66 95 44.4%
mapfre 66 78 17.3%
18 other companies 451 539 19.5%
IN TOTAL 1,606 in 2007 25%
Source: Fedeseg

Another important effect of Sucre’s departure was a drop in delinquency. Until November 2021 the disorder was 44.7%, from December 2021 – when Sucre leaves the market – the outlook improves and closes at 24.8%.

According to Patricio Salas, executive president of the Ecuadorian Federation of Insurance Companies, the problem is that delinquency at Sucre skyrocketed because it had trouble making payments on time. Until December 2022. delinquency dropped to 23.8 percent. that is, a point less. Although this is a high delinquency rate, he explains that this indicator will always be important because the due obligations are calculated from the first day of the policy.

Looking at the market in general, Salas indicates that compared to 2020 and 2021, there has clearly been a recovery to pre-pandemic levels. Growth was particularly noted in the segment of group life and health insurance, both of which are related to personal insurance. The market grew $451 million and personal insurance alone represents an increase of $150 million. In the collective life segment, which grew by 35 percent, the main group of sales was life insurance, which was activated by greater contracting of loans. Explain that this insurance allows families to avoid inheriting debt.

Remember, for example, that due to the 2021 pandemic, 37,000 cases of death from COVID-19 were paid out. An estimated $250 million was paid. A large part of these payments were made under lien policies, he explains. Without this coverage, the debts that family members would have to assume would be equal to that same amount.

Another segment that has grown in the people area is policies for medical company employees or workers. This has increased, he says, as companies have taken out this type of insurance for their employees again. This segment grew by 29%.

Seguros Equinoccial is the company that had the highest sales volume in 2022 according to the ranking of the Federation of Insurance Companies of Ecuador (Fedeseg). Courtesy of Seguros Equinoccial Photo: Space

Regarding rankingSeguros Equinoccial, from Grupo Futuro, closed the 2022 fiscal year in first place with net written premium of more than USD 229 million, net profit of USD 5.1 million and a market share of 12%.

For Juan Manuel Merchán, CEO of Seguros Equinocial, “closing 2022 with excellent financial results is a sign of innovation capacity, technical discipline, commercial efficiency and adaptability to the needs of our clients and business partners.” The spokesperson points out that the company will use analytical intelligence for all levels and areas of business from 2023. This will enable a complete understanding of the clients’ interests and needs in insurance.

What happened to the property?

In terms of assets, insurers in Ecuador had $1,885 million in 2021, and $2,098 million at the end of 2022, or a growth of 11.3%.

Payables are also growing, moving from $1,313 million in 2021 to $1,466 million in 2022, an 11.7% increase.

While capital also has a positive behavior, as it grows from $572 million to $632 million in the above period. This represents an increase of 10.4 percent.