Eveline Loza
SVP Director
Marsh
/
Insight

Insurance Based on Protection Not Accidents

Fri, 09/01/2017 - 13:36

The insurance industry must create confidence among consumers if it is to transform a culture that eschews coverage beyond the required liability, says Eveline Loza, SVP Director of Marsh Brockman y Schuh Mexico.

At the end of 2016, Marsh reported Mexico’s automotive insurance industry grew 20 percent compared to 2015. “For us, this is an important piece of data because while it reflects the growth of the industry, it is teamed with an increased accident rate,” says Loza. According to Marsh, accidents in the automotive industry grew by 15.59 percent in 2016 and only in the light vehicle segment they increased by 15.52 percent. “Our biggest challenge is to reduce this by supporting clients with strategies, preventive measures and consultancy jointly with insurance companies.”

There are 83 insurance companies in the Mexican market, 32 of which offer automotive coverage, according to statistics from the Mexican Association of Insurance Companies (AMIS). “The insurance market has grown more than the general economy in Mexico during 2017,” says the SVP Director, but the insurance culture has room for improvement, according to Marsh’s professional team in Mexico. Direct premiums in the industry including light and heavy vehicles, tourist and mandatory policies grew by 20.44 percent in 2016, compared to 2015, and only cars presented a growth of 19.98 percent in that same period according to AMIS.

The company’s focus is on quantifying risks and defining areas of opportunity. Marsh believes premiums should reflect broad options for drivers to protect their vehicles with value-formoney rather than a rise in the number of accidents. “Less than 30 percent of Mexico’s vehicle fleet has insurance. Insurers need to change their commercial strategy to boost consumer confidence. Buyers need to see the importance of having insurance, besides the fact that regulations today demand all drivers have liability insurance. That has not been 100 percent achieved to date,” says Loza.

Marsh is described as a multidisciplinary broker because it has specialized practices for each individual industry. The company’s automotive practice has a global span, permitting communication between representatives in different countries and the sharing of intellectual property and leadership strategies. Together, this keeps the company at the forefront when it comes to solutions for customers.

Marsh has established a strategy involving credit and mobility that caters to current trends away from ownership. “For example, Uber is a modern company providing private drivers and we offer a solution with a certain type of insurance suited to the financial organisms that provide car loans,” says Loza. For specific cases, Marsh can adapt products and solutions so that end-users have a policy suited to their needs.

Technology can boost adaptability, as applications change the communications landscape. Several insurance companies in Mexico offer cell-phone applications that allow customers to report accidents or check information about policies but it is generally necessary to promote their use among customers. Loza says customers are used to handling accidents or claims over the phone. “Insurers have invested in the digital aspect of insurance, especially the largest companies, but there is a need for more digital culture among end-users,” says Loza. In an effort to establish technology and innovation models, Marsh invested in developing differentiating products with strategies aligned to the brand specifically.

The current economic challenges motivate Marsh to work on technology solutions, commercial strategies to continue increasing penetration, to improve insurance conditions and to diversify policies. Marsh’s success over the past 55 years is thanks to its collaboration with authorities and clients. This has led to a return on investment from risk management, through a defined process called Marsh 3D methodology. With this method, the company seeks to support entities by promoting and encouraging insurance as a protection measure.

The current economic challenges motivate Marsh to work on technology solutions, commercial strategies to continue increasing penetration, to improve insurance conditions and to diversify policies. Marsh’s success over the past 55 years is thanks to its collaboration with authorities and clients. This has led to a return on investment from risk management, through a defined process called Marsh 3D methodology. With this method, the company seeks to support entities by promoting and encouraging insurance as a protection measure.