AM Best has maintained a stable outlook on Peru’s insurance segment, citing ongoing profitability, sound reinsurance protection and overall good conditions for 2026 renewals.

The Best’s Market Segment Report, “Market Segment Outlook: Peru Insurance,” states that positive factors backing the stable outlook include the continued developments in Peru`s insurance regulatory framework that encompasses microinsurance and alternative distribution channels and currently is promoting changes to support the digital transformation of the financial system, aiming to boost innovation and economic inclusion. At the same time, uncertainty surrounding the duration and potential escalation of the Middle East conflict, combined with ongoing political tensions derived from Peru’s June 2026 presidential runoff election could weigh on economic activity, which in turn could impact insurers operating in the country.

Insurance penetration in Peru is low (2% of GDP in 2025), and the insurance industry is composed of 17 insurers, with four of those companies accounting account for nearly 75% of premiums. Premium growth in the Peruvian insurance industry is led by life insurance, and has shown signs of stabilization, as has the industry’s loss ratio, reflecting price adjustments and prudent underwriting, as well as the lack of severe catastrophe events.

“The insurance industry maintained premium sufficiency in 2025, showing a slow but steady decline in management expenses and controlled acquisition costs, demonstrating the market’s ability to navigate the different cycles in reinsurance,” said Inger Rodriguez, senior financial analyst, AM Best. “The Peruvian insurance industry remains well protected through comprehensive reinsurance programs placed among reinsurers with high levels of security.”

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=366830.

To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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