Life Insurance Market - Brazil

Goals

To get informed about the life insurance market in Brazil, including the market size, growth trends, purchaser demographic trends, the top life insurers, emerging startups that are attracting the opportunities, sales channels (agents, online, via mobile, or other channels), the market structure and breakdown (term life and whole life insurance), and how the Brazilian market structure compares to the United States. This research will be used to evaluate an investment in an early-stage life insurance company in Brazil.

Early Findings

Market Size and Growth

  • The Brazilian life insurance market gross written premiums reached $39 billion in 2018.
  • In 2013, the life insurance segment accounted for 53% of the gross written premium of the Brazilian insurance market.
  • Between 2013-2018, the market grew at a compound annual growth rate (CAGR) of 8.7% in terms of gross written premium, in BRL.

Market Structure

  • The Brazilian life insurance market is broken down by policy type into term insurance, whole life insurance, endowment Policy, money back policy, child plan, retirement plan, and Unit Linked Insurance Plan (ULIP).
    • Term insurance: A "term plan is one of the most affordable plans compared to other types, as the amount of the premium is quite nominal. One can opt for regular payment or single payment mode." There are three types of term insurance, level term, decreasing term, and increasing term.
    • Whole life insurance: "A whole life insurance plan offers benefits in both the cases – when the policyholder survives the policy or on his/her sudden demise during the term." There are two types of whole life insurance: ULIPs and traditional policies.
    • Endowment policy: This policy offers both coverage and a means for saving.
    • Money-back policy: By using this type, "the insured gets a certain percentage of the sum assured at regular intervals during the term of the policy."
    • Child plan: This type is used to save money for the child's future and to get coverage for the breadwinner. "It is a combination of savings and insurance, where the insured can use the money for the future needs of the childlike higher education."
    • Retirement plan: There are two types of retirement plans: immediate annuity and deferred annuity.
    • ULIP: This type "offers dual advantage – coverage and a means of investment. Under this plan, the cash value/paid-up value of the policy depends on the current asset value." There are three types of ULIPs: aggressive ULIP, balanced ULIP, and conservative ULIP
  • Another report from PR News Wire broke down the market into two categories: individual life insurance and group life insurance. There are three types of individual life insurance, whole life insurance, pension insurance, and endowment insurance. Under the group life insurance, there are two categories: group whole life insurance and superannuation insurance.
  • Direct research through government databases, industry-related associations, market reports, statistic portals/databases, trusted media articles, and business directories revealed that the breakdown of the market size by type is not publicly available. This information seems to be obstructed by paywalls.
  • However, we found that the Brazilian life insurance market is dominated by simple term life insurance policies and pension insurance.

Key Players

Summary of Our Early Findings Relevant to The Goals

  • During our preliminary research, we found the market size (in terms of gross premiums written), market growth, and key players.
  • Our initial hour of the research didn't cover every part of the requested information, so we haven't confirmed yet if we can find all the requested and suggested data. However, it also indicated that the market share breakdown by insurance type (term and whole insurance) is publicly unavailable.
  • Our recommendations are based on our findings in early research.
  • Please select one or more of the options provided in the proposed scoping section below.

Proposed next steps:

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