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CORPORATE | 02.03.2020

The insurance industry in Mexico will grow above GDP

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MAPFRE Economic Research presents the Economic and Industry Outlook 2020 in Mexico City, and encourages adopting economic and institutional reforms to revive the economy.

By Angel Castañeda and Jorge Viveros. Mexico City. 

The General Director of MAPFRE Economic Research, Manuel Aguilera, and the CEO of LATAM NORTH REGION and MAPFRE MEXICO, Jesús Martínez, recently presented the Economic and Industry Outlook 2020 report.

Manuel Aguilera presented a group of industry representatives, strategic partners and journalists with an analysis of the climate that the country’s insurance industry will face in a global context, which indicates stabilized economic activity at relatively low levels and forecasts greater dynamism for Asian markets.

Regarding Mexico in particular, where the stagnant economy in 2019 stemmed from all GDP items—with the exception of exports—being in contraction, he noted that “the greatest risk is delay in the reforms and in the economic and institutional measures required for ensuring significant economic revival.”

“One option is for the public sector to go back to investing in human capital and infrastructure,” said Manuel Aguilera.

Jesús Martínez referred to the insurance industry’s challenges and opportunities in Mexico, explaining that controlling inflation and easing pressure on the exchange rate have allowed a relaxation of monetary policy, which will help stimulate the economy by reducing financing costs for households and businesses. For 2020, a climate conducive to the growth of the insurance market, above GDP, is forecast.

The growth of insurance also depends on the educational work of agents and media sources who share this report,” said Jesús Martínez.

Both executives encouraged attendees to promote communication on the importance of insurance as a prevention tool within their respective areas of work, and to stimulate discussion on public policies and certain key products, such as third-party liability in automobile insurance, which remains scarce with only three out of every ten cars insured.