Comprehensive Approach to Insurance through Careful AssessmentThu, 04/04/2019 - 16:09
Q: How does the company differentiate from other insurers focusing on major medical expenses and personal accidents?
A: We are part of Grupo Valore, a group of four insurance companies that specialize in different market niches: GMX specializes in property and liability, ANA in car insurance, Argos in life insurance and Prevem Seguros in health insurance. This strategy allows us to provide agile and comprehensive services for each situation and to generate synergies to provide better services.
Without a doubt, medical insurance is one of the most complex products in the sector due to the many variables it considers. However, we are convinced that through appropriate risk selection, we can benefit both our clients and investors. Up until the insured turns 50 years old, our policies are similar to those of our competition. From that point on, all our insured take an exhaustive medical exam that gives us significant information on how to better provide care for them. After this test, we do not expect any surprises regarding future health issues because we have a comprehensive medical profile. This generates transparency for us and for the insured and helps the latter fully understand the policies and benefits they receive. We want to position ourselves as an honest company through appropriate risk selection.
Our strategy has borne fruit and we now have about 6,000 insured in our family plan and about 40,000 insured in group plans. Once they pass the initial filter, our insured usually do not switch insurance companies. We also have few complaints with the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF). Our model relies strongly on prevention, which is why every year we gift some selected clients with a basic checkup. The results are not shared with us; they are for our insured to be aware of their health. Our vision is to strengthen our insured base as we aim to prove that this model allows for cost control.
Q: What recommendations would you give the government to boost growth in the insurance sector?
A: The Solvencia II policy implemented in 2009 led to significant changes in the insurance sector. The goal of this policy is to ensure users are protected and to inform them of whether companies have the financial capabilities to cover their claims. However, there have been few promotional efforts from the authorities regarding the benefits of Solvencia II. The market needs to raise awareness about the costs of out-of-pocket healthcare expenses, especially when dealing with catastrophic diseases such as cancer.
An area of opportunity for the government would be to complement social security services with private insurance products. The government has to balance its budget and provide care for its citizens. A growing problem is providing care to seniors, who have higher healthcare expenses. Collaboration between public and private care providers, for instance through the development and implementation of specialized insurance policies, would greatly alleviate the burden on the public sector’s finances.
Q: What will be the role of technology in Prevem Seguros’ practices?
A: InsurTech products are already part of the market and we must be ready to deal with these new initiatives. However, medical insurance is extremely complex and acquiring a product requires the guidance of a professional. Fully understanding a medical insurance product is hard; we believe that at this stage, the public will continue to acquire these products from agents or brokers.
Q: How can the industry address the lack of insurance agents to target the Mexican population?
A: The sector has strong career development potential. For insurance agents, this is a business opportunity that does not require a high initial investment. It is a well-paying position where the agent is solely responsible for their own income. Moreover, this profession carries a strong social component because it requires providing care and preserving health. Agents must be aware that these activities benefit families.