(MENAFN Press) The Venezuelan personal accident and health insurance segment accounted for the second-largest premium share of the overall insurance industry during the review period (2007’2011).
In the presence of rising healthcare expenditure and mandatory health insurance for retirees, the disabled and low-income families, the health insurance category increased at a CAGR of 34.1% during the review period.
The Venezuelan health insurance category led the personal accident and health insurance segment with a market share of 95.4% during the review period.
Over the forecast period (2012’2016), consumer awareness, with regards to health insurance, is anticipated to be backed by rising healthcare expenditure and is expected to drive the segment.
Inadequate public healthcare service
The Venezuelan public healthcare service declined during the review period, having previously been one of the most comprehensive and well funded in the region.
The decline in public healthcare services supported the growth of private healthcare coverage.
In such a mature market it becomes difficult for insurance companies to increase their market share.
Considering such growth, Venezuelan health insurance accounted for 95.4% of the segment, posting CAGR of 34.1% during the review period and is expected to grow at a CAGR of 24.5% over the forecast period.
Insurance brokers expected to remain the largest distributers
The segment's distribution system was led by brokers during the review period.
Although their market share decreased marginally during the review period, it is expected to grow over the forecast period.
The channel is also anticipated to remain the largest distribution channel in terms of gross premium new business over the forecast period.
Brokers accounted for a market share of 55% in 2007, which decreased to 54.5% in 2011 yet is projected increased to 54.8% in 2016.
Rising healthcare cost
The Venezuelan population increased from 26 million in 2007 to 28 million in 2011, at a CAGR of 1.5%, whereas, the nation's healthcare expenditure increased at a CAGR of 15.2% during the same period.
A rise in the nation's population is expected to support the growth of the segment over the forecast period.
In addition, per capita healthcare expenditure grew at a CAGR of 13.5%, and is anticipated to grow over the forecast period.
Timetric
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