In conjunction with the “Far from home” feature appearing in the January 2013 print issue on life insurance sales in emerging market countries, NUL Senior Editor Warren S. Hersch questioned insurance professionals from several of these nations about their practices. The following are written responses from Leonardo Lerer, a partner at Lerer Life Corretagem de Seguros (Lerer Life Brokers), based in Rio de Janeiro, Brazil.
Hersch: How would you describe your life insurance/financial service practice? What are your areas of expertise? Whom do you serve?
Lerer: I work with individual life insurance acting as a consultant analyzing revenues, expenses, responsibilities, future projects and dreams. I take into consideration the family structure and the revenue income division of the family. All of this is through a worldwide recognized company with an official headquarters in Brazil.
Hersch: How would you assess the current market for life insurance and annuities in Brazil? Is the market growing or contracting? Why?
Lerer: The Brazilian life insurance market is booming, with a growth rate around 20 percent annually. As part of the Brazilian economic stabilization, there was an improvement on most of the population’s income.
As a result, a relevant part of that population that had no access to this kind of product due to lack of resources is now entering into this market. The local insurance companies are aware of this momentous time and the new products that are being launched, which makes this market extremely attractive.
Hersch: Which life insurance and annuities products are selling well in your practice? Why?
Lerer: Insurance companies recently launched their annuity products in Brazil. Some are still waiting for regulatory (SUSEP) approval. In the coming years I think we are going to see great growth in the popularity for these kinds of products.