An Ecuadorian annually invests an average of $113.56 in insurance, while the average in Latin America is $265.45. This implies that here it is 134% less than in the region. In Ecuador, life, automotive and general branches are most in demand. This generates that out of a total of 28 insurers on the national market, the annual premium growth from 2021 to 2022 is 9%.

This according to Latinoinsurance, a provider of technical and economic information on insurance in Latin America, who pointed out that the insurance sector in Ecuador represents only 1.83% of the country’s gross domestic product (GDP); while in Latin America that percentage rises to 3% on average. The fact that the insurance sector represents a relatively low percentage of GDP in Ecuador indicates the need to strengthen the insurance culture in the country, he says.

In Ecuador you can hire anti-theft insurance from 5 USD per month, the value only applies in the case of groups such as urbanizations or apartment buildings

Underwriting trends continue to grow, surpassing pre-pandemic levels and reaching $2,000 million in total market premiums in 2022, with general affiliates maintaining their lead, according to figures from the Business, Insurance and Securities Regulatory Commission. however, the lifeline has broader growth in 2022.

Patricio Salas, executive secretary of the Ecuadorian Federation of Insurance Companies (Fedeseg), emphasized that “the market trend continues to grow, especially the group life insurance branch, in 2023 we predict growth compared to 2022.” Furthermore, he mentioned that Ecuador continues to work on creating easy access to insurance, microinsurance and inclusive insurance.

He also pointed out that only 18% of risks in natural disasters (El Niño phenomenon, heavy rains, dry season for the agricultural sector, earthquakes, among others) and crime have insurance, which is an excellent indicator to promote the culture of insurance in Ecuador, since ” these losses are difficult to overcome”.

One of the insurance companies that has started a technological transformation to facilitate access to insurance is Seguros Equinoccial. Esmeralda Malagón, the company’s senior business manager, cited the IPSOS report, Predictions to 2023, to point out that globally 65% ​​of the world considers extreme weather to be a major influencing factor; in Chile 72%, Ecuador 70% and Colombia 69%.

Agricultural insurance premiums exceeded policyholders in 2017, 2018, 2019 and 2020.

“Despite the fact that we have these measurements, we still have to continue working to create a culture of insurance, we have to understand that it is not an expense, but an investment, support and protection for family well-being and financial security,” said Malagón, who stated that insurance trends continue to change, as there is growth and greater interest in “Cyber” insurance, that which covers digital transactional risks.

Just like in Ecuador, life insurance, automobiles and general branches predominate; in Colombia, Peru and Brazil, pensions and accidents at work are the most sought after; cars in Argentina and life in Mexico.

Mauricio Parra, CEO of reinsurer Guy Carpenter Colombia, highlighted the trend of ceding risks in Ecuador to reinsurers, as the country with the second lowest percentage compared to Colombia and Peru.

This variation in cession is due to the loss rate that each area would have, either by weight or combination, maintains and protects the insurer’s financial solvency, helps neutralize the effects of economic, sociological and scientific changes.

A clear example was the earthquake of 2016, when the sector covered 600 million dollars without affecting the financial stability of any of them or the pandemic, indemnifying more than 250 million dollars.