Crisis increases price of car insurance
This article was translated by an automatic translation system, and was therefore not reviewed by people.
TONI SCIARRETTA
At the height of economic expansion last year, the major insurers in the country vied new and old customers through lower prices, especially in the car. After the period of calm, the bill arrived and now these same companies seek to recover margins gain to balance their reserves and remain solvent.
For consumers, the result was an average increase of 8% to 10% in the prices of insurance policies car in Sao Paulo over the last year, according to Sincor-SP (Union of Insurance Brokers). The increase is the first that occurs after four years of price reductions.
The prize money is paid to the insurers are not controlled in the country. According to Susep (Superintendence of Private Insurance), which regulates the sector, the premiums collected in the year through May totaled R$ 6.57 billion-worth 9.65% more than the same period last year, without excluding the effects of entry and output policies.
When a consumer renews insurance for a car, the tendency is to always have the value reduced due to the devaluation of the insured vehicle as well as discounts given to the customer who did not claim.
This year, besides the effort to recover the banks, insurance companies still face a small increase in accidents (collision and theft) compared to last year. According to Susep of every R$ 100 collected, R$ 67 went to cover claims in May, when the latest survey, the same month of 2008 were R$ 65. The industry historically works with 70% of premiums to claims directed.
No parts
Insurers say some spare parts disappeared from the market and that prices are much higher than those of years past, since many of these companies have reduced the volume produced by the crisis.
According to Antonio Penteado Mendonça, insurance specialist FIA (Institute of Administration), there was a "massacre" among insurers to snatch market share last year, while the economy was doing well and companies could offset losses with gains in bank applications financial. With the reduction of the basic interest rate to 8.75%, these gains were more difficult.
According to Mendonca, few insurance companies made money on cars in 2008. "This year the bill does not close at all. The only way is up the price of insurance. But there is much room to rise. Who does that leave the market."
With the fall in the rate of interest, "all insurers will need to make a profit and non-financial industry. This can increase insurance? Can. But it can reach 20%? I do not. There is room for these increases," said Leoncio Arruda, chairman of Sincor-SP.
According to Mendonça, the FIA, the consumer should look for an insurance broker who works with different companies. "Who is up to the bank manager has a great risk of losing out," he says.
The director of Susep, Alexandre Penner, denies that the regulators put pressure on insurers, even though they give attention to possible abuses in the contracts. "The Susep longer involved in the technical-solvency and internal controls. We do not care much about price, especially the car, because there is competition. The price and the universe of options to the policy are great."
Source: Folha de Sao Paulo
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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