About this Book
Between the mid-70s and the late 80s, the insurance market, pension plan and capitalization stood stagnantly. High inflation, inhibitory regulation of competition and national culture unaccustomed to insurance were the main obstacles. Since 1990, the market has changed a lot. Governments have given insurers greater freedom of pricing and other policy conditions, several international companies started operating in Brazil, the supply of products has diversified and increased competition has brought benefits to consumers in the form of falling premiums. With the reforms of the early years of the 90s, it began a period of growth that was even more pronounced after the success of monetary stabilization of 1994 ended with hyperinflation. The leading indicators of the insurance market more than doubled. The annual revenue from insurance premiums and contributions to pension plans rose from $ 32 per capita in 1990 to $ 443 in 2013, and the ratio of that revenue to GDP increased from 1.2% to 4.0% in the same period (excluding health insurance).
The importance of the sector exceeds, by far, the numerical expression. Indeed, daily life, as we know since the Industrial Revolution, would be impossible without insurance. Companies could not take risks as they do at present. Therefore, their investments would be severely restricted and, with them, the future expansion of the economies. Whole markets would collapse: just imagine what would happen with car sales, with the credit market and foreign trade if there were no insurance support. The insurance industry, increasingly, supplements the State in providing critical services in health and social security and, in doing so, allows the state to focus attention and resources on meeting the needs of the poorest sections of the population.