The global biomedical refrigerators and freezers market is slated to magnify at a strong CAGR of 4.2% over the period amid 2016 and 2024. The market, which was worth $2.91 billion in 2015, is predicted to upswing to $4.28 billion by 2024…
BMI View: The insurance industry in the Dominican Republic is among the least developed in the Latin
America and Caribbean region. Despite a relatively benevolent economic climate, we see little sign of this
scenario changing over the medium-term, with penetration and density set to remain at embryonic levels.
However, we see potential for expansion in certain areas of the market, such as the health and personal
accident insurance, where premiums are growing rapidly, albeit form a low base. While both the life and
non-life sector are highly consolidated at the higher end of the market, the plethora of smaller indigenous
players sitting below the leading providers presents an opportunity for investors and new entrants, and may
lead to increased merger and acquisition activity.
Key Updates And Forecasts
? We have adjusted our outlook for headline inflation in the Dominican Republic this quarter, with
consumer price inflation set to reach 2.7% by end-2017, up from 1.7% in H1 2016. This will lead the
country's central bank rate to remain unchanged at 5.0% through to the end of the year, removing the
possibility of a drop in the policy rate that would have stimulated consumer spending and demand for
insurance. The rise in inflation will also eat into the revenue gains enjoyed by insurers through growing
? Life insurance will see a marginally slower rate of expansion, reflecting longer-term structural trends,
namely the lack of awareness among Dominican households of the benefits of life insurance products.
Higher inflation and slighter slower headline economic growth will also temper the recent increase in
household spending. We forecast life premiums to grow from USD140mn in 2016 to USD167mn in