Brazilian Insurance Industry

History

The insurance industry in Brazil started its operation in 1808. The first company operating in Brazil was named “Boa Fé” what in English would mean Good Intention. The company was objected to operate in the in the maritime sector.

Brazilian insurance sector were operating under Portuguese Law and only in 1850 laws were created specifically to Brazilian market.

The creating of this regulations were fundamental for the development of the insurance industry in Brazil making possible the arising of several companies, which operated not only in the maritime sector but on land insurance.

In 1862 appeared the first multi-national company operating in Brazil.

Development

The insurance industry in Brazil became well developed in the end of the XIX century due to a new regulations on maritime and on land insurance which it brought a large number foreigner companies with vast expertise.

From 1950 to 1990 the insurance industry in Brazil were stagnated.

The government granted the insurers greater freedom to set prices and other terms of policies, several international companies began operating in Brazil, the product offering has diversified and increased competition brought benefits to consumers in the form of falling premiums. With the reforms of the early years of the 90s, began a period of growth that was even more pronounced after the success of the 1994 monetary stabilization that ended hyperinflation. The main indicators of the insurance market more than doubled: the annual revenue from insurance premiums and contributions to pension plans increased from U.S. $ 32 per capita in 1990 to $ 395 in 2012 (estimated) and the quotient of this revenue against GDP rose from 1.2 % to 3.6 % over the same period. In 2012, that market grossed U.S. $ 252.4 billion in direct premiums of insurance, health insurance, pension contributions and savings bonds. Such awards and contributions served to increase provisions amounting to R$ 420 billion, which represented 5.69 % of GDP. Provisions have also secured the payment of compensation of claims, welfare benefits and redemption of pension plans and capitalization of R $ 135.2 billion in 2012 (3.05% of GDP). The importance of the sector exceeds, by far, the numeric expression. Indeed, everyday life, as we know since the Industrial Revolution, would be impossible without insurance. The companies could not take risks as they do at present, so your investment would be severely restricted and, with them, the future expansion of the economies. Entire markets would collapse: just imagine what would happen with the sale of cars, with the credit market and the trade if there was not the support of insurance. The insurance industry, increasingly supplements the State in providing critical services in health and social