/ Agencia Andina
The development of Private Special Economic Zones (ZEEP) in Peru would open a new cycle of expansion for the insurance sector, driven by increased investments in infrastructure, industry and foreign trade, according to projections by AVLA Peru.
The company noted that this model could mobilize investments exceeding 10 billion dollars over a five to ten-year horizon, generating a direct effect on the demand for insurance for small and medium-sized enterprises and on the sophistication of the local market.
Currently, the insurance sector represents around 2% of GDP, with significant room to expand its penetration, as is the case in neighboring countries such as Colombia with 3.3% and Chile with 4.5%.
“The deployment of the ZEEP will raise investment standards in the country and, with it, the need for more technical and structured insurance solutions. Insurance will be a key component to make projects viable and reduce risks,” stated Walter Fernández, general manager of AVLA Peru.
This scenario could boost insurance lines such as fire, earthquake, cargo transportation, multi-risk, construction and engineering, among others. This demand for insurance is expected given the installation of new logistics industrial hubs and the cargo transportation service in the country from the ZEEP.
Fernández indicated that one of the most relevant effects will be the expansion of the insurance market base, and also highlighted the impact on the perception of Peru as an investment destination.
