Argentine life and retirement insurance association AVIRA believes fiscal incentives are necessary to foster the development of the sector by postponing individuals' consumption, local daily Infobae quoted AVIRA chairman Gabriel Chaufán as saying.
Speaking at AVIRA's first international seminar on life and retirement insurance, Chaufán said life insurance penetration in Argentina measured as premiums over GDP today stands at 10%.
The sector is challenged to increase that figure by advising families how to plan ahead financially, he said.
Life and retirement insurance represented 30.2% of the Argentine insurance industry's total premiums at 6.92bn pesos (US$2.22bn) as of end-March, according to figures from local regulator SSN.
Life was the insurance segment worst affected by the country's economic meltdown in 2001-02, contracting 45% to 1.77bn pesos in 2003.
The life segment's steep decline was due to the general disruption of the financial system and "pesofication," when the peso's peg to the dollar was dropped, in January 2002.
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