Friday, Oct 4, 2024
logo
Update At 14:00    USD/EUR 0,00  ↑+0        USD/JPY 0,00  ↑+0        USD/KRW 0,00  ↑+0        EUR/JPY 0,00  ↑+0        Crude Oil 0,00  ↑+0        Asia Dow 0,00  ↑+0        TSE 0,00  ↑+0        Japan: Nikkei 225 0,00  ↑+0        S. Korea: KOSPI 0,00  ↑+0        China: Shanghai Composite 0,00  ↑+0        Hong Kong: Hang Seng 0,00  ↑+0        Singapore: Straits Times 0,00  ↑+0        DJIA 0,00  ↑+0        Nasdaq Composite 0,00  ↑+0        S&P 500 0,00  ↑+0        Russell 2000 0,00  ↑+0        Stoxx Euro 50 0,00  ↑+0        Stoxx Europe 600 0,00  ↑+0        Germany: DAX 0,00  ↑+0        UK: FTSE 100 0,00  ↑+0        Spain: IBEX 35 0,00  ↑+0        France: CAC 40 0,00  ↑+0        

Insurance leader GNP has the edge on stability and transparency

Article - August 23, 2011
Mexico’s low penetration rate of around 2% of its GDP represents a huge potential market for several niche insurance products and Mexican insurer GNP is raising awareness of the benefits of good insurance cover to tap this burgeoning market
JUAN IGNACIO GIL ANTON, DIRECTOR OF CORPORATE INSURANCE AT GNP AND PRESIDENT OF AMIS
From an insurance point of view, Grupo Nacional Provincial (GNP) has Mexico covered.

One of the nation’s largest insurance providers, it offers a wide range of products that offer accident, life, health and auto coverage, as well as commercial packages for companies. According to Juan Ignacio Gil Anton, director of corporate insurance at GNP and also the president of the Mexican Association of Insurance Companies (AMIS), Mexico’s insurance market holds great opportunities for investment.

“The insurance sector is relatively old in Mexico,” says Mr. Gil. “Following the signing of the free trade agreement [NAFTA] in 1994, which once again allowed foreign investment in the country, the number of insurers doubled. Today we have about 100 companies. The world's largest companies have come here, including MetLife, AXA, ING, Zurich, Allianz, Liberty, and Mapfre, among others. The evolution of the market has been good, but we believe it should be much better. Our penetration in the economy is not what we would like it to be.”

A large portion of the Mexican population is uninsured, representing an enormous opportunity for insurance companies to market numerous niche insurance products.

 “The biggest opportunity I see in the Mexican insurance market is that we have a lot of room to grow. Our penetration is low, so there is significant market potential here,” says Mr. Gil.

‘THE BIGGEST OPPORTUNITY I SEE
IS THAT WE HAVE A LOT OF ROOM TO GROW. OUR PENETRATION IS
LOW, SO THERE IS SIGNIFICANT MARKET POTENTIAL HERE...
I THINK MEXICO IS CLEARLY A PLACE TO INVEST’ 



“Technology is beginning to arrive in the market and companies that come from more established places, such as the U.S. market, can leverage this advantage in Mexico, with direct sales, designing more sophisticated products, or access mechanisms aimed at very specific markets. With growth above 5% and a penetration rate as low as we have in the insurance sector of about 2% of our national GDP, I think Mexico is clearly a place to invest.”

Business Monitor International reports that Mexico is the second largest insurance market in Latin America, after Brazil, at the end of 2009. Both life and non-life insurance segments are witnessing significant rises in premiums. 

Data published by the country’s national insurance regulator, the Comision Nacional de Seguros y Fianzas (CNSF), shows the five largest players in the life insurance segment accounted for 70% of premiums written in the first half of 2010. In the non-life sector, they accounted for 47% of premiums over the same period.

GNP is one of the market leaders in Mexico, with a 14% share. It distributes its products through a national network of more than 5,000 agents operating from some 170 offices. It is part of one of the largest conglomerates in the country, Grupo Bal. Furthermore, GNP is the 100% Mexican-funded company and challenges the multinational companies in Mexico. It is also one of the oldest, having more than 100 years of experience in the market.

“GNP has maintained stability in the market for years. It is not an insurer that came to Mexico and left only two or three years later. The chairman of the board has more than 40 years in the chair. We have significant corporate stability,” says Mr. Gil, who sees the company’s competitive advantages in its shareholders’ support to the company’s management, its sales force and its human capital.

  2 COMMENTS



Andy
19/02/2012  |  19:06
100% of 1

What was Mexicos GNP at the end of the year 2010?

VERA LOPEZ
26/03/2012  |  16:24
100% of 1

I WOULD LIKE TO BUY YOUR MEDICAL INS