Insurance Industry in Argentina

Global Insurance Industry overview

Global Insurance sector:
Since 2015, the value of the insurance, reinsurance, and insurance brokerage trade has increased at a
compound annual growth rate (CAGR) of 0.7 percent, which resulted in a total value of $5,227.1 billion in
the year 2020. It is anticipated that the market would grow at a compound annual growth rate of 7.2
percent, from $5,227.1 billion in 2020 to $7,404.0 billion in 2025. It is anticipated that the market would
grow at a compound annual growth rate of 5.5 percent between the years 2025 and 2030, ultimately
reaching $9,670.1 billion.

The historic amount experienced expansion as a result of a robust economic process in developing
nations, increased assistance costs, an increase in the frequency of natural disasters, and changes in
insurance policies that were driven by the government.

A rise in the prevalence of chronic diseases and disabilities, the influence of COVID-19, the acceptance
of insurance for medical care, the expansion of the center category in developing nations, and an
increase in the ownership of homes and the use of mortgages will be the primary drivers of future growth.
Future expansion in the insurance, reinsurance, and insurance brokerage industries may be hampered
by several problems, including a lack of consumers' faith in insurance companies and the availability of
assets that do not meet investment-grade standards.

The global insurance, reinsurance, and insurance brokerage industry is tremendously fragmented,
consisting of both large and small companies across all three subsectors. It is also possible that
partnerships and collaboration among market participants have played a role in market consolidation.
These factors have allowed market participants to save significant amounts of money, enhance their
product offerings, and expand geographically.

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Industry Overview:
As of the 30th of June in 2021, there were a total of 207 firms operating in the insurance market of
Argentina. Of this figure, 191 were insurance entities, while the remaining 16 were local reinsurers.

As of the 30th of June in 2021, there were a total of 191 insurance entities already in existence. Of these,
18 worked in Retirement Insurance, 35 worked exclusively in Life (which includes Collective, Individual,
Social Security, Health, Personal Accidents, and Funerals), 12 worked exclusively in Occupational Risks,
and 5 worked in Public Passenger Transport. The "Mixed" activities are carried out by the other 121
organizations, all of which are devoted to the operation of different types of property damage insurance.

Since the reinsurance market was allowed to gradually become more competitive, the number of
operators has decreased from 26 in 2016 to 16 in 2021. There are 11 national entities and 5 branches of
international entities that make up the market as a whole. There are now 115 companies that are
admitted to participate in the reinsurance market.

NUMBER OF OPERATORS ACCORDING

TO THEIR MAIN ACTIVITY
  2019 2020 2021
Insurers 189 191 191
Local Reinsurer 20 16 16
Total 209 207 207
Source- SSN

Production is used as a metric to assess the level of activity in the industry; specifically, this refers to the
number of written premiums after cancellations have been deducted. The entire production of the Market
is expected to exceed 1,090 billion pesos during the Fiscal Year 2021, representing a nominal rise of
47.61 percent in comparison to the previous year and a reduction in adjusted values of 1.73 percent.

The ratio of gross written premiums, minus total write-offs, to gross domestic product is another metric
that may be used to gauge the significance of economic activity related to insurance.

It is essential to look at both the sector's overall productivity and its typical expenditures on a per-person
basis about this activity. These indices make it possible to gauge the size of the insurance industry and
make comparisons to other global markets as well as to the sector's historical performance. The
significance of the production of the insurance industry in the overall economy of the country is shown by
comparing it to the Gross Domestic Product (GDP). It has been discovered in the series that the market
would reach 3.02 percent of it by the year 2021. (includes local insurance and reinsurance activity). The
correlation between them is 2.87 percentage points, and it pertains to the insurance sector.

The term "production per capita" refers to the annualized amount of money that is spent on insurance by
each resident on average, expressed in constant pesos (only the production of insurance is taken into
account, which is what consumes the population). This indicator is always increasing and follows the
same pattern of fluctuations as the overall production. Spending on insurance will be $22,594 per person
for the entire year of the fiscal year 2021.

Productivity is measured on an employee-by-employee basis, taking into account the sum of insurance
operations and reinsurance, and amounts to $35.4 million when values are held constant. There was
$33.8 million worth of productivity from the activity insurance.

The production of the insurance market was greater than 1,035 billion pesos, of which over 84.9 percent
relate to property damage insurance and the remaining pesos correspond to property damage insurance.

The production of the Automotive Vehicles Branch is greater than 405 billion pesos, which equates to a
share of 46 percent of Property Damage Insurance and places it in the top position in the segment. The
insurance for the Occupational Risks Branch was somewhere in the neighbourhood of 235 billion pesos,
which put it in a position to be the second-largest producing branch overall (27 percent of the segment).

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As a result of their combined contributions, the Collective Life and Debtor Balance Life Branches account
for around 76 billion pesos, which is equal to approximately 49 percent of the overall output of personal
insurance. The following chart depicts the development of production in the insurance industry in 2021,
broken down by branch and assuming constant values.

When it comes to the Local Reinsurance Market, Production figures for the 2021year operations total
more than 55,756 million pesos.

Life Insurance

During the 2020 fiscal year, they managed 141 different insurance firms in the Life and Retirement
Insurance sector.

When broken down by the different types of operations, there were 89 with mixed operations (63.1%), 34
that were exclusive of life operations (24.1%), and 18 that were exclusive of retirement operations (12.8
percent ).

NUMBER OF OPERATORS
  201 2020 Percentage
9 Change
Non-Exclusive Life 87 89 2.30%
Exclusive Life 32 34 6.25%
Retirement 16 18 12.50%
TOTAL 135 141 4.44%
Source- SSN

NUMBER OF OPERATORS IN 2020

18; 13%

34; 24%

89; 63%

Non Exclusive Life Exclusive Life Retirement

Source- SSN

The highest number of operators can be seen in non-exclusive life with a percentage of 63%, which is the
majority part of the entire sector.

PREMIUMS, CLAIMS, AND EXPENSES

millions of $
  2019 2020 Percentage Part %
Change %

  Premiums Written net of Cancellations

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Non-Exclusive 67675 70108 3.60% 65.50%

Life
Exclusive Life 25262 27799 10.00% 26.00%
Retirement 10958 9061 -17.30% 8.50%
TOTAL 103895 106968 3.00% 100.00%
  Claims Paid
Non-Exclusive -19013 -17357 -8.70% 46.60%
Life
Exclusive Life -9073 -8110 -10.60% 21.80%
Retirement -10386 -11761 13.20% 31.60%
TOTAL -38472 -37227 -3.20% 100.00%
  Total Expenses
Non-Exclusive -36410 -35321 -3.00% 67.10%
Life
Exclusive Life -11820 -12808 8.40% 24.30%
Retirement -3491 -4534 29.90% 8.60%
TOTAL -51721 -52663 1.80% 100.00%
Source- SSN

The total premium written in the year 2019 was 103895 million $ and 106968 million $ in 2020, we can
see an increase in the premium income by 3% only. The claims paid in the year 2019 was 38472 and in
2020 it was 37227, here we can see a decrease in claims by 3.30%.

Structure of Premiums Written net

of Cancellations in 2020

9061; 8%

27799;
26%
70108; 66%

Non Exclusive Life Exclusive Life Retirement

Source- SSN
The majority of the premium comes from the Non-Exclusive life which is 66% of the entire sector of the
insurance. Premiums totalling 107 billion pesos were put up for sale on the market, of which 65.5% were
distributed to "Non-Exclusive" businesses. The total amount of paid claims, which includes ransoms and
rents, was $37.2 billion, whereas the total amount of expenses was $52.7 billion. The participation rate of
"Non-Exclusives" is 46.6 percent, while the participation rate of "Exclusives" is 67.1 percent.

WRITTEN PREMIUMS NET OF PERSONAL

CANCELLATIONS - INSURANCE MARKET

In millions of $ 2021 2020 Percentag

  $ Part. $ Part. e Change
% %

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Personal accidents 20329 12.97 14472 13.53 40.47%

Health 2135 1.36 1563 1.46 36.55%
Individual life 34386 21.95 22519 21.05 52.70%
Collective Life 58035 37.04 40933 38.27 41.78%
Debtor Balance Life 18869 12.04 12639 11.82 49.29%
individual burial 684 0.44 478 0.45 43.17%
Collective Funeral 8231 5.25 5304 4.96 55.17%
Single Retreat 1712 1.09 910 0.85 88.06%
Collective Retirement 12307 7.85 8150 7.62 51.01%
Life and Periodic Annuities 0 0 0 0 -
Total People 15668 100 10696 100 46.48%
8 8
Source- SSN

The total premium income in 2020 was 106968 million $ while in 20201 it increased to 156688 million $ in
2021, we can see a increase of 46.48% in the total premium from 2020 to 2021. T he market increased in
terms of output and spending by a percentage equivalent to 3% and 1.8%, respectively, as compared to
the previous year's numbers. A decrease of 3.2 percent may be seen in the variation in the claims. The
average amount of the premium paid by each business is 758.6 million dollars. There is a flow connection
of 34.8 percent between claims paid and written premiums, but the expenditure indicator totals surpass
49.2 percent.

PARTICIPATION BY BRANCH –
PERSONAL INSURANCE

7%
9%
37%
13%

22%
12%

Other People Retirement Personal Actions

Individual life Debtor Balance Life Collective Life

Source- SSN

The combined total of the Collective Life and Debtor Balance Life Branches is roughly 76.9 billion pesos,
and they provide approximately 49 percent of the entire output of Personal Insurance, we can say that
the market is dominated by collective life and debtor balance life branches.

Non-Life Insurance

The production of the Motor Vehicles Branch, which is close to 405.5 billion pesos, accounts for 46.1
percent of the total amount produced by the Property Damage Insurance sector, which is 878.3 billion
pesos. This makes the Motor Vehicles Branch the leader in the segment. The insurances provided by the
Branch of Labour Risks are valued at around 235.8 billion pesos, which places it in the position of the
second Branch with the largest Production (27 percent of the segment).

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PARTICIPATION BY BRANCH – PROPERTY

DAMAGE

14%
7% 27%

6%
46%

Work Hazards Family Combined automotive

Fire Other Patrimonial

Source- SSN

Written Premiums net of Property Damage Cancellations - Insurance Market

2021 2020
Percentage
In millions of $ $ Part % $ Part Change
%
Fire 57,284 6.52 34,295 5.78 67.04
Family Combined 53,504 6.09 34,114 5.75 56.84
Motor Vehicles 4,05,514 46.17 2,65,167 44.67 52.93
Public Transport Passengers 1,939 0.22 1,782 0.30 8.81
Work Hazards 2,35,817 26.85 1,77,778 29.95 32.65
Hail 28,392 3.23 16,186 2.73 75.41
Livestock 40 0.00 14 0.00 178.01
Civil Liability 21,367 2.43 13,454 2.27 58.82
Stole 11,824 1.35 8,416 1.42 40.50
Caution 13,596 1.55 9,103 1.53 49.35
Credit 2,796 0.32 1,314 0.22 112.82
Passenger Accidents 1,655 0.19 1,295 0.22 27.79
air navigation 3,528 0.40 2,417 0.41 45.95
Technical 12,492 1.42 8,705 1.47 43.51
Transport Helmets 2,930 0.33 1,854 0.31 58.02
Transport Goods 10,743 1.22 6,672 1.12 61.01
Other risks 14,909 1.70 11,008 1.85 35.45
Total Property Damage 8,78,331 100 5,93,575 100 47.97
Source- SSN

The highest share of the non-life insurance premium comes from the insurance of motor vehicles. The
premium for motor vehicles in 2020 was 2,65,167 million $ while in 2021 was 4,05,514 million $. We can
see a growth of 52.93% from 2020 to 2021.

Regulatory Bodies for the Insurance Industry in Argentina:

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The Superintendencia de Seguros de la Nación protects the rights of those who have purchased
insurance by supervising and regulating the insurance market to ensure stable growth and the
implementation of control mechanisms that are both open and efficient.

To safeguard policyholders, maintain compliance with existing rules and regulations, and build a robust,
transparent, and effective market, SSN oversees the assessment and inspection operations of market
operators.

Evaluate the economic and financial situation of the market operators for insurers and reinsurers,
conducting an analysing well as all relevant aspects, through the analysis of the information received by
the SSN, the information from the inspections, and the information that will eventually be requested.

By the rules and legislation, carry out the analysis and monitoring of the economic-financial and solvency
situation of the insurance and reinsurance entities, as well as the analysis, approval, and monitoring of
the solvency and financial regularisation plans presented by the entities.

Conduct an evaluation and analysis of the Financial Statements, as well as the Investment and Capital
needs, as well as the reports from Auditors and Actuaries, while ensuring compliance with the applicable
Rules and Legislation.

Perform an analysis of the findings of the "on-site" Examination for the goal of delivering an opinion,
analyse the impact on the entity's financial statements and solvency, and continue to monitor the
regularisation plan.

Participate in the investigation and drafting of regulations for Financial Statements, accounting standards,
processes for auditors and actuaries, capital needs, solvency margins, reserves, and investments, and
suggest modifications.

Encourage preventative efforts against the discovery of potential instances of non-compliance with the
legal laws, regulations, and rules governing the prevention of money laundering and financing of
terrorism.

Major Players in the Industry

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Mapfre

Mapfre is a multinational group that has focused primarily on insurance, reinsurance, and financial
activities since 1933. They provide global solutions to protect people, professionals, and companies
against risks by providing a wide range of products and services that allow them to manage both their
current and future requirements. They have a global footprint, with operations in 43 countries, as well as
a corporate structure that can adapt to the changing nature of the industry and the requirements of
customers located all over the world.

ROE: 9 percent, or 8.3 percent if one excludes the extraordinary gain that resulted from the termination of
the agreement with Bankia, the second and third phases of the retirement plan in the Iberia regional area,
restructuring in Italy, and debt buyback; this compares to an established aspiration of 8.5 percent ROE
(excluding goodwill impairment adjustments).

Compared to the goal of 700 million euros, the company's net operating earnings came in at 765.2 million
euros (703 million euros if one excludes the extraordinary gain that resulted from the termination of the
agreement with Bankia, the second and third phases of the retirement plan in the Iberia regional area, the
restructuring in Italy, and the debt buyback).

The rise in insurance premiums was 8.2 percent, which was far more than the 3 percent growth that was
anticipated. As opposed to the target of 95 percent, the non-life combined ratio came in at 97.46 percent
(96.1 percent omitting the first, second, and third stages of the retirement plan in the Iberia regional area
and restructuring in Italy).

Their income surpassed 27.2 billion euros, representing a rise of more than 7 percent from the previous
year. Both Iberia and LATAM turned in excellent performances, which is very relevant considering the
contracting economic environment of that region. The growth of insurance premiums, which is the very
heart of what they do, was even better, coming in at 8.2 percent and being even better than the previous
quarter. The amazing resilience of your firm was reflected in its earnings, which came to a total of 765
million euros. These earnings take into account the unprecedented receipt that resulted from the
dissolution of one of the bancassurance partnerships that they had in Spain. It is important to know that
the majority of the capital gain generated from this alliance has been used to strengthen the business,
laying the foundations to increase the future profitability of the company, adapting and improving the
operational efficiency of the operations in Spain and Italy, as well as optimizing the Group's financial
structure. With that being said, it is important to know that this alliance has generated a significant
amount of capital gain.

Zurich Insurance

Zurich Insurance Group (Zurich) is a global multi-line insurer that provides services to more than 55
million clients, including both individuals and companies, throughout more than 210 countries and
territories. Zurich, which was established 150 years ago, is revolutionizing the insurance industry. Zurich
is expanding its range of preventative services, including those that promote wellbeing and boost climate
resilience. This is in addition to the insurance cover that the company already provides.

They are an industry-leading multi-line insurance that provides services to its clients in both domestic and
international markets. They offer a comprehensive portfolio of goods and services in more than 210
countries and territories throughout the world. Their clientele consists of individuals, people running their
small enterprises, firms of medium and big size, and even global corporations.

A global leader in the business insurance industry, Zurich also has a thriving retail franchise. They are in
a strong position to be successful throughout the cycle as a result of the improved portfolio quality in our
commercial insurance. Property and Casualty (P&C) recorded a combined ratio of 94.3 percent in 2021,
which is a measure of profitability. This was the lowest level reported in the previous 15 years.
Approximately two-thirds of the Group's property and casualty (P&C) gross written premiums are
generated by commercial insurance.

Zurich has a long-term strategy that centers on protection and capital-light savings businesses, and it
implements this approach. This puts the Life company in a strong position to compete successfully in the

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current low return climate. More than ninety percent of new business in 2021 came from the protection,
unit-linked, and corporate savings businesses.

When compared with the previous year on a like-for-like basis, gross written premiums in Property and
Casualty (P&C) for 2021 reached a record high of USD 40.1 billion, an increase of 11 percent. This was
determined after taking into account the effects of currency movements as well as closed acquisitions
and disposals. Gross written premiums increased by 13 percent when measured in United States dollars,
with growth being exacerbated by positive currency moves.

The operational profit of a business in 2021 was USD 3.1 billion, representing a year-over-year increase
of 50% over the previous year's figure. The gain was essentially the outcome of better underwriting,
which benefited from both increased top-line revenue and an improved combined ratio.

The net investment result fell by 15 percent in comparison to the previous year. This reduction was
brought on by a decrease in investment income as a consequence of the earn-through of lower yields, as
well as a decrease in the performance of the Group's hedge fund portfolio.

The contribution of other items, which includes the net non-technical result and non-controlling interests,
increased by USD 97 million in comparison to the previous year. This improvement was primarily driven
by a gain realized from the sale of a real estate asset that was previously held for its use.

The Life division of the Group company reported a business operating profit of $1.8 billion for the full year
of 2021, which is a 27 percent increase from the previous year's results. Excluding the impacts of COVID-
19, the operating profit of the Life business increased by 26 percent. This increase was driven by the
Group's ongoing emphasis on protection and capital-light-saving products. This, together with steps taken
in portfolio management and a more positive experience with claims, contributed to margin gains in the
Asia Pacific and Europe. These improvements were reinforced by profitable expansion in Latin America
and Europe, as well as improved investment returns. Other contributors were one-time benefits of about
USD 150 million, the majority of which were attributable to EMEA and which were the consequence of
favourable reserve releases, assumption revisions, and other one-offs.

On a reported basis, the EMEA region had a 27 percent increase in operating profit, which brought the
region's total to USD 1.2 billion. When taken into account, COVID-19 contributed to a 16 percent rise in
the operating profit of the company, which resulted in a total of USD 1.3 million. The increase in
Switzerland's business operating profit was due to an increase in higher-margin individual life business as
well as a positive claims experience that was mostly connected to favorable reserve releases. Both of
these factors contributed to an improvement. Both Italy and Ireland were able to achieve significant and
profitable growth in unit-linked product sales while also benefiting from favourable market circumstances.
The business operating profit in Germany grew as a result of positive economic assumption updates and
other one-off factors, while the business operating profit in the United Kingdom increased as a result of
loss reserve reviews and profitable growth in protection.

On a reported basis, the operating profit of businesses in Latin America showed an increase of %. If
COVID-19 claims are taken out of the equation, the operating profit of the company increased by 43%.
This expansion was made possible by lucrative sales made via Zurich Santander as well as a positive
run-off development of a big corporate protection plan in Chile, which benefitted from favourable market
circumstances. Both of these factors contributed to the growth of the company.

The Asia Pacific region was responsible for a company operating profit of 347 million U.S. dollars, which
is 79 million more than it was the previous year. The re-pricing and portfolio enhancement efforts that
were carried out in Australia, in addition to the better investment returns, were largely responsible for the
considerable increase in performance.

AXA

AXA SA is the holding company for the AXA Group, which is the most successful insurance provider in
the world. As of the conclusion of the fiscal year in 2020, AXA Group had total assets of €805 billion.

France, Europe, Asia, AXA XL, and International are the five primary centers in which AXA does its
business (including the Middle East, Latin America, and Africa).

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Life and Savings, Property and Casualty, Health, Asset Management, and Banking are the five different
business lines that AXA operates under. In addition to this, several Holding entities within the Group are
responsible for a variety of administrative and support functions.

Both the type and the intensity of competition are different in each of the nations in which AXA is active.
AXA competes against not just other insurance firms but also other financial institutions such as banks,
asset management companies, investment advisers, and other similar businesses. The following is a list
of the primary elements that influence competition:

 the magnitude, robustness, and overall quality of the distribution routes;

 in particular the caliber of the consultants;

 a variety of product lines, as well as product quality and usefulness of features

 and creative thinking

 cost

 the level of service provided

 performance of the investment management team

 the average level of bonuses paid out in the past for the contracts in question

 the crediting of rates on items for the General Account

 the notoriety, public profile, and name familiarity of the brand

 a rating for the company's capacity to pay out claims and maintain its financial stability

A comprehensive selection of insurance offerings, including Life and Savings, Property and Casualty, and
Health coverage, is made available by AXA in the French market. Its offering encompasses a wide
variety of products, such as motor, household, property, and general liability insurance; banking, savings
vehicles, and other investment-based products for personal and individual customers; health, protection,
and retirement products for professional and individual customers; and other investment-based products.

In addition, AXA France is in the process of building an Employee Benefit proposal for worldwide clients,
including individuals, corporations, and other types of organizations, by capitalizing on its product and
distribution expertise.

MetLife seg de Vida

MetLife is a significant global provider of insurance, annuities, employee benefits, and asset
management. It is also one of the most reputable organizations in the financial services industry. They
are in a dominant position in the market in several countries, including the United States, Japan, Latin
America, Asia, Europe, and the Middle East. They are also one of the largest institutional investors in the
United States, and their general account portfolio is invested primarily in fixed income securities
(corporate, structured products, municipals, and government and agency), mortgage loans, as well as
real estate, real estate joint ventures, other limited partnerships, and equity securities. They are also one
of the largest institutional investors in the world.

Their well-known brand, internationally diverse and market-leading businesses, competitive and
innovative product offerings, as well as their financial strength and industry experience, should all
contribute to driving future development and boosting shareholder value.

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They provide a wide range of insurance and financial services products in the United States, including
life, dental, disability, vision, accident & health, capital market investment, guaranteed interest, stable
value, and annuities. Other goods they offer include annuities.

They offer life, medical, dental, credit, and other accident & health insurance, as well as annuities,
endowments, and retirement & savings products outside of the United States. Additionally, they provide
credit insurance. They anticipate that the growth rate of these enterprises will typically continue to be
faster than that of their operations in the United States.

Comparing 2021 to 2020, premiums, fees, and other adjusted revenues were each down $256 million,
which is equivalent to a one percent decline. This was largely related to a loss of $3.6 billion linked to the
disposal of MetLife P&C, as well as reduced premiums in their RIS business; however, this was primarily
offset by growth in their Group Benefits business. The growth of their Group Benefits business was
primarily attributable to the expansion of their group life business. This expansion resulted in increased
premiums from their participating contracts; however, these premiums are subject to change depending
on claims experience and the impact that the acquisition of Versant Health will have in 2021.

In addition, rises in their group disability businesses, as well as the impact of premium credits in 2020,
and growth in the dentistry business all contributed to the expansion of other key goods. The effect of
new sales and increase in membership in their accident & health and legal insurance businesses were
the primary contributors to the expansion of their optional product offerings. The effect of 2020 sales in
the pension risk transfer business was the primary factor that contributed to the decline in premiums in
the RIS segment. This decline in premiums was largely offset by gains in our U.K. longevity reinsurance
and post-retirement businesses. Changes in RIS premiums are often offset by comparable shifts in the
benefits enjoyed by policyholders. Increases in policyholder account balances were the direct cause of
increasing interest margins, which were brought about by the expansion of RIS's stable value and capital
market investments businesses.

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Future Outlook
Important events that helped re-establish trust among people and companies alike while boosting
economic recovery occurred in 2021, including the broad deployment of pandemic vaccines and a
relaxation of regulations connected to pandemics. However, the fight against COVID-19 is not yet ended,
and there is a good chance that uncertainty will continue—possibly for an infinite amount of time.

Insurers, in general, anticipate more fast growth in the next year despite lingering concerns around
COVID-19; nevertheless, non-pandemic difficulties including legislation, talent, sustainability, and
changing customer tastes may provide speed bumps. A great deal will be determined by the efficiency
with which insurance companies handle their investments in new personnel and technologies. The
industry's strategic goals should include things like adopting more flexible work patterns, striking a
balance between the need to keep a human connection with clients and the need to automate some
processes, and being more aggressive in bolstering the trust of stakeholders.

The difficulties that insurers face range from economic obstacles, such as the possibility of persistent
inflation, to concerns about sustainability, such as climate risk, diversity, and financial inclusion, to the
rapidly shifting preferences of consumers about the products and services they buy.

The emergence of open finance, along with the ecosystems of financial solution providers that it enables,
has emerged as one of the defining trends in financial services that will characterize the 2020s. This is
largely in reaction to shifting client requirements and expectations. There has been an uptick in the desire
for insurance policies that are more readily modifiable, more reasonably priced, and more transparent;
these policies should also be able to provide a better fit for the constantly shifting circumstances that exist
in the marketplace.

In the insurance industry, not too long ago, the received wisdom was that people would lose their jobs as
a result of insurers adopting more technology and automating more operations. This was not that long
ago. Even before the COVID-19 outbreak, however, a fundamental shift was already in progress, with
corporate leaders seeking to solve skills gaps, update their talent policies, and establish more dynamic
and agile ways of working. Now, competition is fiercer than ever for the most skilled individuals, who have
more leeway than ever before to choose when, when, and how they put in their time at work.

There is now a human-technology interplay that is more sophisticated and intertwined than ever before.
There is a widespread agreement among CEOs who are focused on the future that human talent is every
bit as crucial to the company's success in the future as artificial intelligence, machine learning, and
updated processing systems. However, the lack of crucial skills and "the Great Resignation" imply that
insurance companies, to become employers of choice, need to overcome the conventional impression of
their profession as being slow-moving and boring.

Insurers will need to provide meaningful work, take stronger stances on social issues that are important
to raise generations of workers (such as diversity and inclusion, and sustainability), and improve their
benefits packages, performance recognition systems, and compensation models. In addition, they will
need to take stronger positions on social issues that are important to raising generations of workers. In
addition, younger people are searching for work that has more of a purpose, which presents an
opportunity for insurers who can tell a compelling story about how their goods and services contribute to
the general welfare of society.

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SWOT Analysis
Strength
Insurance Life has accumulated a varied collection of patents and copyrights as a result of their
inventions as well as the purchase of such rights from the original creators. This has the potential to aid
Insurance Life in combating competition in a variety of markets.

The industry of insurance life operates in an environment rife with regulations and requirements from the
government. When operating in these markets, the corporation must navigate the climate by cultivating
robust partnerships with lobbying groups and political networks. Many first-mover benefits come with
Insurance Life's position in the market. It has been tested in several different domains. The solutions and
strategies for innovation and entrepreneurship have been of assistance to Insurance Life in the process
of generating new solutions to access markets that had previously been unexplored.

Insurance Life has a solid track record of not only introducing new products in the home market but also
catering to diverse markets based on client insights. This accomplishment was recently highlighted in a
press release.

Insurance Life sees the local market in which it works as both a source of strength and a hindrance to the
company's growth and innovation in product development.

Certainly, there will always be some untapped market potential in Argentina's insurance sector due to the
country's massive population and prosperous economy. Both insurers and their clients have shown
remarkable resiliency in the face of an often unstable financial and economic climate. In terms of the
world economy, Argentina is considered a market of medium size. Scale economies are possibly be
generated by a number of the industry's biggest firms (especially in the non-life category), thanks to the
regional operations they maintain across Latin America.

Weakness
Insurance Life does not have a good track record when it comes to addressing environmental problems.
Because modern consumers view compliance with environmental standards as a crucial component of
running a successful business, this may result in animosity among consumers.

The sluggish economy and inflation hurt the attitude of both businesses and consumers. The market is
very competitive, even though non-life companies appear to have more bargaining power. The majority of
business in the non-life sector comes from required lines of coverage, such as auto and employment
insurance. Many of the local players are quite little until measured against the standards of Argentina.
Rampant inflation continues to ravage the economic landscape. The assistance provided by the IMF is
not having much of an effect in the short term to calm the turbulent economic situation. The rate of
unemployment is increasing, which puts a damper on extraneous expenditure, particularly in the area of
non-life insurance.

Opportunity
This development might be leveraged to the benefit of Insurance Life by decreasing the number of
available alternatives in the market and focusing marketing efforts on the sale of just the most successful
products.

Over the preceding decade and a half, the market has seen significant growth. The introduction of new
consumers has led to a shift in the preferences and tastes of existing consumers. Because of this,
Insurance Life faces two significant challenges: first, it must determine how to keep its existing
customers, and second, it must figure out how to attract new customers. Insurance Life has made an
effort to diversify its business by initially utilizing several brands and then, more recently, by including a
variety of features in response to the preferences of customers.

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The rapid development of machine learning and artificial intelligence is having a profound impact on the
technological environment in which Insurance Lifeworks operates. These developments in life insurance
may be utilized to achieve greater levels of efficiency, reduce costs, and usher in a new age of operation.

The process of globalization has resulted in the creation of opportunities in the international market. The
insurance life sector is in a strong position to capitalize on these opportunities and increase its market
share. Growth in the broad market may help Insurance Life diversify its risk by lowering its reliance on the
local market for revenue. This can be accomplished by increasing the company's presence in
international markets.

Insurance Life may design a new payment plan for its customers that will take advantage of the growing
amount of discretionary cash available to them. By penetrating the areas that are geographically close
by, Insurance Life might profit from this trend.

In the life insurance market, the percentage of people with coverage is extremely low, but demand is
growing as the labor force expands and life expectancy rates continue to rise. There is a possibility that
certain businesses will be able to attain a greater growth rate by increasing their prices, introducing new
products, and/or developing new distribution channels. A potential and beneficial wild card would be tax
breaks that encourage people to increase their investments for retirement and life insurance. Both the life
and non-life industries will benefit from the growing number of consumers who fall into the middle class.
Growth in the non-life sectors will be supported by positive developments in the commerce, logistics, and
automobile industries.

E-commerce as a business strategy can be of assistance to Insurance Life in its efforts to build
partnerships with regional suppliers and logistics service providers in international markets. The
proliferation of social media may help Insurance Life reduce the costs associated with entering new
markets and more easily connect with customers using a much-reduced amount of money spent on
marketing. Crowdsourcing of different services and consumer-oriented marketing based on data and
purchasing habits may also be the outcome of this.

Threat
Insurance Life, which is coming under increased criticism from various activist groups and non-
governmental organizations, should keep a close eye on the quickly changing policies that are being
implemented by the government, notably in the areas of environmental and worker safety. Insurance Life
should take precautions against the rise of protectionism by doing everything from storing data in foreign
markets to distributing risk by operating in countries with various economic cycles. These steps should be
taken together.

Because there is always the possibility of having easy access to credit, Insurance Life needs to strive
toward decreasing its dependency on debt to grow its business. The celebration has continued for more
than a decade, and if the Fed decides to pull back, enormous interest rate hikes might be in store for
Insurance Life.

In general, local insurers are vulnerable to the credit risks that are linked with the securities issued by the
Argentine government. Claims filed for workers' compensation and occupational insurance have been
gradually increasing over the past few years. The exposure of insurers to the potential for volatility in
Argentina's financial markets has increased as a result of changes in the regulatory framework that
demand investing in local assets. International insurance companies may keep lessening their
commitment to the local market. The value of Argentina's currency relative to the dollar in the US is still
an ongoing concern, and a weaker peso will be detrimental to efforts to attract investment from
elsewhere. The formulation of increasingly interventionist policies has severe negative consequences for
governance.

When governments try to increase environmental levies to encourage the use of greener alternatives,
insurance life companies have to find a way to deal with the resulting increase in costs. This may lead to
higher costs for shipping and packing for Insurance Life. The widening gap between rich and poor is one
of the most significant challenges that globalization and capitalism face today. Insurance Life has seen
the impact first-hand, namely a decrease in demand for its products from customers belonging to the
middle class in countries located in the USA.

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Porter 5 Force Analysis

The threat from substitutes: The threat of substitutes is assessed low:

Since, there is always a risk for the company in the prospective alternatives that clients can invest in
instead of insurance, such as stocks, land, gold, and other such things. Although there are few
substitutes for the same value offered in the insurance market, there is always a risk for the company. On
the other hand, we can say with some degree of certainty that there is no adequate replacement for
health insurance. However, it is important to emphasize that clients have fewer financial obligations when
switching providers. However, because the value proposition for alternative short-term or long-term
investments is different, the purpose and the functioning are quite different, and they are unable to
completely replace medical and health insurance.

The threat of new entrants: The threat of new entrants is assessed high

The risk posed by new competitors may be evaluated using a variety of factors, including the number of
existing businesses operating in the industry, the difficulty of entering the market, the expense of
switching providers, the value of the brand, and its distinguishability, and so on. Also, the barriers to entry
affect a lot in the insurance industry. There are not many obstacles to overcome to get started in the
insurance business. The same may be said for the costs associated with switching customers. Because
all insurance products are quite similar to one another, there is limited space for difference for businesses
that operate in the insurance industry. The difference that may be shown to exist between the two is not
significant.

Brand equity plays a significant role in the decision-making process for customers when it comes to
switching from one insurance provider to another. A new firm in the industry can’t achieve the same
amount of brand awareness and brand equity as an established operator in a shorter period. Building
trust requires putting in a lot of effort and taking your time. This holds for a brand-new contender that is
considering making its debut in the business. Existing giants in the financial sector or other high-brand
equity businesses may decide to enter the market for insurance, and this development is a distinct
possibility. In this particular scenario, the danger will be more severe.

Bargaining power of suppliers: The bargaining power of suppliers is assessed low

Reinsurers, lead providers, capital markets, human resource suppliers, and other types of businesses
might be classified as suppliers to the insurance sector. The supply chain that serves the insurance
business is notable for the significance of its numerous suppliers. There is a good selection of reinsurers
available for insurance firms to choose from; nevertheless, there is not much of a distinction between the
various reinsurers given that they all have comparable brand equity. Additionally, there is a respectable
selection of lead suppliers available for one to pick from. The capital markets won't be interested in
investing in a company unless it has a strong brand equity and the ability to expand rapidly about the
level of risk involved.

Bargaining power of buyers: Bargaining power of buyers is assessed as moderate

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Customers are defined as individuals or companies who purchase insurance from a variety of companies.
The bargaining power of consumers may be measured by a variety of factors, including customer
cohesiveness, the volume and magnitude of purchases, the availability of alternatives, the capacity to
differentiate products, and so on. The individual customers do not have any sort of consistent pattern of
activity. Individual consumer purchases are not in massive amounts. However, commercial organizations
will pay a significant sum to get insurance packages for their workforce, and these acquisitions are not
cheap.

As a consequence of this, they hold the power to negotiate and may thus gain the most advantageous
offers on bundles. As was said earlier, there is little room for differentiation in this industry due to the
large number of competitors that offer the same level of value. Because companies usually lock in
insurance packages with a vendor for a predetermined period, and because it is difficult to break the
contract after it has been concluded, switching costs are greater in the case of organizations.

Rivalry among competitors: Rivalry among competitors is strong

There are already a substantial number of competitors in this industry. In addition, competitors and other
companies that provide financial services may enter the market, which presents another potential risk.
There are other businesses in the market that are of comparable size and have equally strong brand
equity. In addition, there is less differentiation between the products, which results in price competition
among businesses in the sector. The competition that one faces come not only from corporations based
in other countries but also from regional and national businesses operating in the same industry.

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