The Insurance Industry in the Dominican Republic, Key Trends and Opportunities to 2016
(MENAFN Press) The Insurance Industry in the Dominican Republic, Key Trends and Opportunities to 2016The Dominican Republic is the second-largest economy in Central America and the Caribbean region, and is classified as middle-income country by the World Bank.
After recording high economic growth averaging 9.5% between 2005 and 2007, growth slowed to 5.3% in 2008 and 3.5% in 2009 due to the global financial crisis and the country's close trade relationship with the US.
Nonetheless, the economy witnessed one of the highest growth rates of 7.8% in the Central American and Caribbean region in 2010, supported by a rise in domestic demand, increased exports and favorable economic policies towards foreign direct investment (FDI).
According to the IMF, the economy is expected to grow at a stable pace of 4“5% over 2012“2016.
The country's favorable economic growth has benefited the country's insurance industry, although despite strong growth during the review period (2007“2011), the insurance industry is still small by international standards.
Over the forecast period, increased investment in infrastructure development, high demand for health insurance products, new product development and a new mortgage law are expected to drive the growth of the industry.
Group life insurance accounts for a major share of the life insurance segment
The group life insurance category accounted for the major share of the life insurance segment during the review period.
The growth in the life segment was mainly led by an increase in group life insurance, which compensated for the slower growth in the individual life category, which was affected by high tax rates.
The growth in group life insurance is driven by growing corporate demand in expanding service sectors such as tourism and financial services, and industrial sectors such as mining and telecommunications.
Non-life insurance maintained stable growth
Stable demand for statutory third-party motor insurance and workman compensation insurance supported the growth in non-life insurance.
Strong demand for cover against fire and other damage to property, which is the largest category in the non-life segment, also drove growth during the review period.
Over the forecast period, a new mortgage law which aims to facilitate the growth of the housing market in the country will spur demand for insurance products related to property, such as mortgage insurance.
Low penetration in life insurance provides an opportunity for growth
Insurance penetration (measured by gross written premium as a percentage of GDP) in the Dominican Republic's insurance industry is low as compared to other countries in the Latin American and Caribbean region.
The country's insurance penetration stood at 1.3% in 2011, which was lower than the region's average penetration rate of 2.8%.
Over the forecast period, this large untapped market could present potential growth opportunities for insurance companies.
ncreasing consumer awareness of the benefits of insurance will also propel the growth of the insurance industry.
The Dominican insurance industry is highly concentrated
The Dominican insurance industry is highly concentrated, with the top 10, of a total of 35 companies, accounting for 92.7% of the total gross written premium in 2011.
Universal Insurance, Insurance Banreservas and Mapfre were the top three leading companies in the industry.
Over the forecast period, given the large number of domestic insurance companies, especially small insurers looking for organic growth and increasing competitiveness, there are opportunities for foreign insurers to access the country's growing insurance industry through partnerships with domestic insurers.
If you are interested in purchasing this research, please click on the following link:
About The Insurance Industry in the Dominican Republic
The Insurance Industry in the Dominican RepublicIf you are interested in purchasing this research, please click on the following link:http://www.menafn.com/research/research_rp_details.asp?rp_id=6148
MENA News Headlines
|Mar 9 2014||UAE's RTA wins USD27 m contract ,MENAFN|
|(MENAFN) UAE's Board of Directors of the Roads & Transport Authority (RTA) has won a contract to construct and collector internal roads at Al Barsha South 1 and Al Barsha South 2, according to the ...|
|Mar 9 2014||Dubai's Emirates to sign off USD76 b deal with Boeing ,MENAFN|
|(MENAFN) Dubai"s Emirates said it will cancel its USD76 billion purchase of Boeing 777X wide-body planes for reasons, such as performance guarantees, according to Arabian Business.
The order ...|
|Mar 9 2014||La Liga Preview: Real Madrid v Levante ,Kora|
|(MENAFN - Kora) Carlo Ancelotti's side rescued a 3-2 win at Estadi Ciutat de Valencia in October with stoppage-time goals from Alvaro Morata and Cristiano Ronaldo.
They will enter this weekend's ...|
|Mar 9 2014||Steyn, Johnson absent for T20 series ,Kora|
|(MENAFN - Kora) Mitchell Johnson has been rested for the three-match series, returning to Australia ahead of the World Twenty20 in Bangladesh.
Dale Steyn battled through South Africa's third Test ...|
|Mar 9 2014||Lee, Son progress to Birmingham last four ,Kora|
|(MENAFN - Kora) Malaysia's Lee thrashed Japan's Kento Momota 21-14 21-18 in their quarter-finals at the National Indoor Arena in Birmingham.
He will face Son Wan Ho in the last four after the ...|
|Mar 9 2014||Copa Libertadores Preview: Atletico Mineiro, Velez Sarsfield near progression ,Kora|
|(MENAFN - Kora) Both teams have claimed two wins from as many games in their groups and a third € halfway through the stage € would set them up nicely.
Mineiro have edged their way to the top of ...|
|Mar 9 2014||Davids: Del Piero should delay coaching plans ,Kora|
|(MENAFN - Kora)
The Sydney FC star, 39, is nearing the end of his career and is yet to re-sign with the A-League club, having been linked with another move to Asia.
Davids, who played alongside ...|
|Mar 9 2014||Blanc confirms Cavani will miss Bastia trip ,Kora|
|(MENAFN - Kora)Cavani returned to Uruguay earlier in the week for personal reasons and will not be back in time for Saturday's match.
The 27-year-old has scored 14 goals in 22 league appearances ...|
|Mar 9 2014||Barca are not in decline, Xavi insists ,Kora|
|(MENAFN - Kora) Barca secured three La Liga titles, two Copa del Rey medals and twice won the UEFA Champions League under the stewardship of former coach Pep Guardiola,
Tito Vilanova carried on ...|
|Mar 9 2014||UAE's Majid Al Futtaim sign agreement with HCT ,MENAFN|
|(MENAFN) UAE-based retail giant Majid Al Futtaim and Higher Colleges of Technology (HCT) have signed an agreement to launch a retail academy and industry consortium, according to Arabian ...|
|Mar 9 2014||Northampton book Anglo-Welsh Cup final spot ,Kora|
|(MENAFN - Kora) George Pisi was the star of the show for the 2010 winners at Franklin's Gardens as he completed a hat-trick in the second half to complete a comfortable victory.
Saracens struggled ...|
|Mar 9 2014||Wenger delighted with Ozil showing ,Kora|
|(MENAFN - Kora) Ozil opened the scoring with a well-taken side-footed finish from inside the area before showing good awareness to lay on Arsenal's fourth for substitute Olivier Giroud late on. ...|
|Mar 9 2014||Russian biathletes give hosts fine start in Sochi ,Kora|
|(MENAFN - Kora) The host nation claimed 33 medals in total at the Olympic Games, 13 of them gold, and their Paralympians also rose to the occasion by winning 12 medals on day one with a string of ...|
|Mar 9 2014||Premier League: Crystal Palace 0 Southampton 1 ,Kora|
|(MENAFN - Kora) Chances were few and far between for much of the opening period at Selhurst Park on Saturday, but it was a mistake by a former Southampton player that saw the deadlock ...|
|Mar 9 2014||Premier League: Cardiff City 3 Fulham 1 ,Kora|
|(MENAFN - Kora)
Caulker, who was part of Roy Hodgson's England squad in midweek, concluded a listless first half with a close-range finish in stoppage time.
Fulham responded well and levelled ...|
|Mar 9 2014||Van Persie substitution was planned, claims Moyes ,Kora|
|(MENAFN - Kora) Van Persie was on the periphery of matters throughout United's routine 3-0 victory at The Hawthorns on Saturday, and appeared fortunate to escape a red card when he seemed to let his ...|
|Mar 9 2014||Serie A: Udinese 1 Milan 0 ,Kora|
|(MENAFN - Kora) The veteran striker, who looks set to call time on his playing career at the end of the season, produced the winner to help Francesco Guidolin's men to their first win in a month and ...|
|Mar 9 2014||Di Natale hails 'important' Udinese win ,Kora|
|(MENAFN - Kora) The veteran striker scored the only goal of the game as Udinese picked up their first win in a month, putting the finishing touch to a sweeping move from the hosts after 67 minutes. ...|
|Mar 9 2014||Susic angered by Dzeko criticism ,Kora|
|(MENAFN - Kora) Dzeko played the entirety of Wednesday's 2-0 defeat to Egypt despite suffering from what he described as a "niggling injury", with the Manchester City striker claiming he asked to be ...|
|Mar 9 2014||Johnson rues 'naivety' after France defeat ,Kora|
|(MENAFN - Kora) A battling performance from Scotland put them 14-9 to the good at half-time at Murrayfield, thanks in the main to tries from Stuart Hogg and Tommy Seymour, and the hosts fought back ...|