Integration with Giant Broadens ReachThu, 09/01/2016 - 14:01
The automotive insurance market in Mexico was worth MX$75.7 billion (US$4.2 billion) in 2015 and has an annual real growth of 8 percent, according to the National Bonding and Insurance Commission (CNSF). That means there is scope for insurer ABA Seguros to grow in the segment by offering added value to clients, a proposition made easier now that it has the added weight of global insurance giant CHUBB behind it.
Founded in 1958, ABA Seguros was already an established player in the Mexican market when global insurer ACE Group swooped in and bought it in 2013. ABA then found itself part of an insurance behemoth when ACE finalized the acquisition of its peer CHUBB in January 2016 for about US$29.5 billion, creating the world’s biggest publicly traded property and casualty insurer under the CHUBB name. “Our relationship with CHUBB increased our level of service and profitability, resulting in an improved connection with our clients,” says David DíazFlores, Automotive Director of ABA Seguros.
ABA Seguros was previously the insurance branch of an OEM, an experience it has translated to its relationship with CHUBB to build stronger products and services for customers. Our Mexican branch has ties to over 80 percent of the brands in the automotive market but is not exclusive to any of them. It also works with banks and other financing firms, which has helped the company gain a better understanding of the market and its clients’ needs.
The National Commission for the Protection and Defense of Financial Service Users (CONDUSEF) is the government organization in charge of measuring indexes of quality standards, terms and conditions, transparency and how companies relate to customers. Díaz-Flores says ABA Seguros is consistently at the top of CONDUSEF’s rankings due to the insurer’s sales process and response time in the case of an incident, as well as its efficient handling of post-accident paperwork. “Communication with clients is paramount for ABA Seguros to ensure they receive the service we promise,” explains Díaz-Flores.
Overall, the relationship with CHUBB has had a tremendous impact on ABA Seguros’ offerings. It now manages over 200 products, compared with about 30 products originally. The result is a more integrated solution for clients, complementing its mainstay automotive policies with life insurance and many other alternatives.
The company also maintains a broad presence across the country with offices in 27 of the 32 states. The strongest markets are Mexico City, Jalisco and Nuevo Leon. It offers standard solutions and insurance policies with added value coverage, which includes a larger return value, zerodeductible options and alternative mobility solutions. The insurer also sells special products that counteract vehicle depreciation for a certain period. Luckily for clients, this means they receive larger payouts in case of an accident.
ABA Seguros’ top challenge is to remain competitive while offering excellent quality coverage to customers.
“The Mexican market is price-oriented, but we have always tried to distinguish ourselves by providing the best service and the most efficient operations,” says Díaz-Flores. The company has invested considerably in technology, processes and training its workforce. Although this is reflected as an added cost in policies, Díaz-Flores believes it ultimately helps the company offer a more complete service. “Our objective is not to be seen as the least expensive company in the market, we want to stand out as the player with the best products, creating trust among clients that will reinforce long-term policies with ABA Seguros.”
To boost customer access to products and information, the company has invested in e-commerce, allowing clients to contract individual policies and corporate products directly on its webpage. The platform features contract data and the progress of any repair in process. After an incident, for example, clients receive a login and a password so they can stay informed about the status of their vehicle. The call center maintains close communication with the customer to notify them of any development. Similarly, the ABA Clientes app is an easy way for clients to keep track of their policies. “We always consider the final client as the most important beneficiary in any technology integration process,” says Díaz-Flores. Its tech innovations have also helped with the company’s workforce. “Our technology developments have also allowed us to maintain close contact with the development of our people in terms of training, sales and distribution processes.”