The Covid-19 pandemic marked the 2020 agenda and impacted all areas of society such as economy and trade. The United States suffered a fall in its GDP of 3.5%, Germany 5%, and China was the only major economy that managed to grow 2.3%.

World merchandise trade declined by 5.6%, the largest decline since 2009 when growth was -22%. Although Latin America was not unaware of this impact, cargo and hull insurance figures from 5 countries in the region show that, in local currency, the impact was less than expected, and even a moderate growth of cargo premiums or hulls was evidenced compared to 2019.  But when these same figures are presented in dollars, a generalized drop in premiums is evident as a result of the devaluation of Latin American currencies in 2020.

The market for hull and cargo insurance in the region last year did not have the expected negative impact on premiums, but devaluation should be a key factor in analyzing market performance.

Mexico

Cargo premiums in 2020 showed an increase of 4.5% in Mexican pesos, in dollars this percentage decreased by 6.4%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in cargo insurance worth USD 475 million and in 2020 the value was USD 445 million. On the other hand, claims in local currency decreased by 40% and in dollars the fall was 47%.

Hull premiums in 2020 showed a decrease of 59% in Mexican pesos (impact of the Pemex policy) and in dollars this percentage decreased by 64%, due to the impact of devaluation. According to the figures, in December 2019 the market earned hull insurance revenues of USD 479 million and in 2020 the value was USD 174 million. On the other hand, claims in local currency grew by 129% and in dollars the increase was 105%.

Marine insurance (added cargo and hull) in 2020 showed a fall in premiums of 28% in Mexican pesos and in dollars this percentage increases to 35%, due to the impact of the devaluation. According to the figures, in December 2019 the market earned revenues of USD 955 million and in 2020 the value was USD 619 million. On the other hand, claims in local currency decreased by 27% and in dollars the fall was 34%.

Brazil

Cargo premiums in 2020 showed an increase of 4.8% in real and in dollars this percentage decreased by 19.8%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in cargo insurance worth USD 382 million and in 2020 the value was USD 306 million. On the other hand, claims in local currency grew by 33% and in dollars the increase was 2%.

Hull premiums in 2020 showed a growth of 41% in real and in dollars this percentage was 8%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in hull insurance worth USD 56 million and in 2020 the value was USD 60 million. On the other hand, claims in local currency grew by 59% and in dollars the increase was 22%.

Marine insurance (added cargo and hulls) in 2020 showed a growth in premiums of 9% in real and in dollars this percentage decreases by 16% due to the impact of the devaluation. According to the figures, in December 2019 the market earned revenues of USD 438 million and in 2020 the value was USD 367 million. On the other hand, claims in local currency grew by 37% and in dollars by 5%.

Colombia

Cargo premiums in 2020 showed an increase of 0.3% in Colombian pesos and in dollars this percentage decreased by 10.8%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in cargo insurance worth USD 95 million and in 2020 the value was USD 84 million. On the other hand, claims in local currency grew by 1% and in dollars the fall was 10%.

Hull premiums in 2020 showed a growth of 31% in Colombian pesos and in dollars this percentage was 17%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in hull insurance worth USD 6 million and in 2020 the value was USD 7 million. On the other hand, claims in local currency grew by 335% and in dollars the increase was 287%.

Marine insurance (added cargo and hulls) in 2020 showed a growth in premiums of 2% in Colombian pesos and in dollars this percentage was -9% due to the impact of the devaluation. According to the figures, in December 2019 the market earned revenues of USD 101 million and in 2020 the value was USD 91 million. On the other hand, claims in local currency grew by 15% and in dollars increased by 2%.

Ecuador

Cargo premiums in 2020 showed a decrease of 8.2%. According to the figures, in December 2019 the market obtained revenues in cargo insurance worth USD 56 million and in 2020 the value was USD 52 million. On the other hand, the casualties increased by 12%.

Hull premiums in 2020 showed a growth of 7%. According to the figures, in December 2019 the market obtained revenues in hull insurance worth USD 35 million and in 2020 the value was USD 38 million. On the other hand, the sinister ones grew by 83%.

Marine insurance (added cargo and hulls) in 2020 showed a decrease in premiums of 2%. According to the figures, in December 2019 the market earned revenues of USD 92 million and in 2020 the value was USD 90 million.  On the other hand, claims increased by 16%.

Peru

Cargo premiums in 2020 showed a fall of 1% in soles and in dollars this percentage decreased by 5%, due to the impact of the devaluation. According to the figures, in December 2019 the market obtained revenues in cargo insurance worth USD 60 million and in 2020 the value was USD 57 million. On the other hand, claims in local currency decreased by 2% and in dollars the fall was 6%.

Hull premiums in 2020 showed a growth of 4% in soles and in dollars this percentage was -1%, due to the impact of the devaluation. According to the figures, in December 2019 the market earned hull insurance revenues of USD26.6 million and in 2020 the value was USD 26.6 million. On the other hand, claims in local currency grew by 113% and in dollars the increase was 103%.

Marine insurance (added cargo and hulls) in 2020 showed a growth in premiums of 1% in soles and in dollars this percentage was -4% due to the impact of the devaluation. According to the figures, in December 2019 the market earned revenues of USD 87 million and in 2020 the value was USD 83 million. On the other hand, claims in local currency grew by 35% and in dollars increased by 39%.