Cargo Trucks on the Streets Signal GrowthBy Alejandro Enríquez | Thu, 03/12/2020 - 09:11
One of the biggest insurance brokers for heavy vehicles shares its strategies to manage a US$102.3 million porfolio in heavy-vehicle premium insurance
Q: How does MAS Seguros’ product and services offering adapt to the industry, specifically to the heavy-vehicles sector?
A: MAS Seguros is an insurance broker with 32 years in the market and specialized in heavy vehicles, mainly of classes seven and eight. We serve around 4,500 operators and 45,000 tractor-trailer units. We are leaders in Mexico; there is no other company in the country with the numbers we manage. In 2019, we will end up with almost MX$2 billion (US$102.3 million) in heavy-vehicle insurance premiums.
We focus on creating an added value for clients so they can control their risk and provide a better service. All our insurance policies have satellite tracking included. This helps us in logistics terms but also with theft issues. We have a joint venture with a multinational company that puts a GPS in all the units we manage, which has led to a recovery rate of more than 90 percent even when theft frequency has multiplied by four.
We also provide legal services around the country, which means our clients do not need to travel from one point to another. We help them solve their issues and keep the supply chain on track. We have clients that are still with us after several years. Our portfolio covers industries such as automotive, food and beverages, manufacturing and even oil and gas. We are looking forward to opening offices in the US because we have so many clients that cross the border or are even moving their operations there.
Q: What is the best strategy to ensure greater insurance penetration in the heavy-vehicle sector?
A: There is a need to have the right coverage but not according to SCT’s standards because they are too low: 19,000 minimum wage days, which is about MX$1.8 million (US$92,000), which covers practically nothing. MAS Seguros prefers that clients buy the right coverage in accordance with the products and risks they incur. When dealing with theft, we try to ensure that all our insurance premiums specify the cost of the vehicle to cover total or partial theft.
Q: What impact has highway insecurity had in terms of costs in the last few years?
A: In the last three years, insurance policies have gone up around 80 percent in this sector. So, it has had a great impact. We have identified three types of theft: one where they steal the unit to sell the parts, another where they continue using the unit with total impunity and a third where they take the units to Central America to work there. For those clients who are the owners of the cargo, the impact is also significant.
Q: How have you shared the advantages of your solutions with potential clients?
A: When we share the price of our insurance policies, we specify all the added values we offer. We mention the satellite GPS, that our equipment is approved by the insurance we work with and that it reduces the insurance deductible by 10 percent.
In Mexico, there is still a lot of room for growth and we want to expand both organically and inorganically. Demand for heavy vehicles is a sign of growth. If the country is doing well, there is a need to buy more trucks to transport the products the country needs. Furthermore, 76 percent of all Mexican imports are moved in cargo trucks.
As a leading player, not only in prices but in service, we need to work on retaining and developing our client base. We have an almost 95 percent retention rate and a large part of this success comes from our focus on risk. We help clients with problems with their fleet, so they can take action and work on continuous improvement. Technology plays a significant role in this regard. Right from their phones, our clients can see their insurance policies, the status of their claim and their payment dates so they can manage everything correctly. We have also linked the satellite platform to track the units.
Q: Do you see an opportunity in the used-truck market?
A: This market focuses on a very special segment because medium and large enterprises do not buy used trucks. This does not, however, mean it is not a competitive segment because there are many used trucks in the Mexican market.
MAS Seguros is a Mexican company specialized in insurance for tractor-trailer units. With more than 30 years of experience, the company has 24 offices across the country, with headquarters in Mexico City