A study reveals that the Dominican Republic has the second place in Central America and the Caribbean and the 80th in the world with the greatest insurance potential, meaning that the country can take advantage of the opportunities generated by the demographic transition and the increase in per capita income to boost the insurance sector.
This is revealed in the report “Demography: an analysis of its impact on insurance activity”, carried out by Mapfre Economics, in collaboration with the Mapfre Foundation. The study introduces the Indicator of Insurance Potential by Demographic Impulse (IPAID), a tool that evaluates the insurance potential in 179 countries, 98.2% of the world’s population. Explores how demographic trends and changes in population structure affect the development of the insurance sector.
The study also highlights that the penetration rate (premiums/GDP) in the country went from 1.2% in 2013 to 1.7% in 2023, a slight increase in this period of years, which is explained by greater dynamism in the Non-Life insurance segment, although remaining well below the region average of 3.1% in 2023.
On the other hand, the insurance density (premiums per capita) stood at 10,180.3 pesos (181.8 dollars), 18.7% above the level reached in 2022 (8,575.9 pesos).
This index reveals significant opportunities for the growth of the Dominican insurance market in various segments. He explains that the favorable demographic structure of the DR, characterized by a considerable population weight and an age pyramid with a significant young base, especially favors the potential of health-related insurance and savings.
Furthermore, its relatively high GDP per capita places the country well above the regional average in property insurance, such as auto and home insurance, highlighting its capacity to develop these lines.
