Panel SA: Life insurance market expects fall after pandemic retreat

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Panel SA: Life insurance market expects fall after pandemic retreat

After the advance registered because of the pandemic, the demand for life insurance should fall in the coming months, following the decline in Covid cases in the country.

“Brazilians don’t have a very sophisticated insurance contracting culture. Nobody wakes up wanting to buy life insurance. The market reacts a lot to moments of crisis”, says Manes Erlichman, director of Minuto Seguros, a Creditas broker.

​The scenario of falling incomes for Brazilians should also affect the demand for insurance, but Erlichman assesses that the volume does not return to pre-pandemic low levels, despite the downward trend.

“The penetration capacity is gigantic. Only 5% to 10% of people have life insurance. It is a branch that matters a lot to insurers”, he says.

In April last year, at a time of peak Covid, the search for life insurance grew 150% compared to the same month of 2020, according to a survey by Creditas with seven partner insurers, such as Allianz and Bradesco.

In the wave of the omni, at the beginning of the year, demand rose once again, up 57% compared to January 2021. In the following months, demand fluctuated.

Joana Cunha with Andressa Motter and Ana Paula Branco

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