recognizes the Peruvian insurance industry's and regulator's efforts to adopt the best practices seen in developed countries, which positioned the country in the upper-middle range in terms of regulatory oversight within the region.
"Technical sophistication of insurance market, diversity and breadth. The Peruvian insurance industry exhibits adequate diversification and product development that compares favorably with the rest of the region," said the credit rating agency in its report 'Industry Profile and Operating Environment: Peruvian Insurance.'
According to Fitch
, while Peru boasts a transparent and strict regulatory framework, there is still room to improve and strengthen its regulations to meet international standards.
"Nevertheless, the market still shows significant concentration among the largest insurers, and geographic concentration is similarly high. The industry records low levels of penetration (1.8%), which have been influenced by the higher proportion of informal labor, as well as by the main insurers' difficulties in diversifying geographically," the document states.
Additionally, Fitch affirms that compulsory product lines represented approximately 27% of total written premiums at YE 2019, recording an increase in their share over the past few years.