El Salvador’s insurance market recorded a solid 5.6% real growth in 2024, according to The Latin American Insurance Market 2024 report published by MAPFRE Economics. The expansion was primarily driven by the non-life insurance segment, which includes auto, health, fire, and credit coverage.

In nominal terms, the sector grew by 6.6%, with non-life insurance contributing 6.9 percentage points to this rise. In contrast, life insurance showed a negative contribution of -0.3 percentage points, mainly due to a contraction in the pension sector. This performance reflects a broader trend across the region—stronger growth in property and health protection products compared to savings and long-term financial instruments.

The report also highlighted that insurance market penetration in El Salvador reached 1.8% of GDP, while per capita premium spending stood at $146, both below the Latin American averages of 3.2% and $340.7, respectively. Life insurance accounted for 26.5% of total premiums, compared to the regional average of 43.5%.

Additionally, the Insurance Protection Gap (IPG) in El Salvador was estimated at $1.86 billion in 2024, representing roughly twice the current market size. This gap indicates a high potential demand for insurance products related to family protection, health, retirement planning, and long-term savings.

At the regional level, the Latin American insurance industry grew by 5.8%, reaching $215.1 billion. Although this marks a slowdown compared to the 17.1% growth recorded in 2023, the study attributes the moderation to a base effect, weaker economic growth in major economies such as Brazil and Mexico, and currency depreciation.

Despite these challenges, MAPFRE Economics emphasizes that Latin America’s insurance market continues to offer significant opportunities for expansion, particularly in areas of health and accident coverage, as well as financial inclusion through protection-oriented insurance products.