List of automobile insurance suffers 10% increase
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Lack of spare parts is the main 'villain' high.
Effects of Prohibition did not affect the insurance market
Woman. Age between 20 and 25 years. 1.0 Use a car equipped with locks and power windows, power steering and air-conditioning to go to work and college in the city of Sao Paulo. In March last year, a person with this profile paid R$ 977.57 in the policy of insurance of the vehicle. Starting this month, will pay R$ 1102.62. The same period, the market price of that car plunged nearly 20% - average depreciation observed in the segment used. This is just one example among many, but it illustrates the current policy of readjustment of the insurance market in the country who are renewing the policy or contract with a new insurance policy, you will see a rising between 8% and 10% increase in confirmed by the President of Association of Estate Agents Insurance in the State of São Paulo (Sincor-SP), Leoncio de Arruda.
If in practice the highest value already uncomfortable, psychologically have even greater effect. With the onset of Prohibition, the market expected to fall by 20% the price of insurance, since insurance companies use to repair a percentage of collisions around 20% of the total. However, the impact of the new law on statistics of accident was not enough to influence the price of insurance. "Prohibition did not resonate, because the fall in the number of accidents was not significant," says the director of the Superintendency of Private Insurance (Susep), Alexandre Penner.
No factors that mitigate the costs, the increase in accidents (occurrence index) expensive contracts. According to director of brokerage Major Insurance, Juliano César da Silva, the car market has loss ratio (which considers the relationship between average use and insurance costs that the company pays) between 65% and 67%, but reached 70% in July. This means that for every R$ 100 received in premium, the insurer will pay R$ 70 in compensation to customers. In practice, if the contract with the insurance covers theft, the price of insurance is of course impacted, because the rates of theft in several states in the country rose.
However, to attribute the increase to only the high rates of theft is a mistake, experts say. Among the main villains of the growth rate of accidents is also the rising cost of parts due to lack in the aftermarket. According to Silva, the makers were not prepared for the surge in demand for new cars, driven by the reduction of the IPI, and this led to lack of parts in the aftermarket. "This undermines the cost, ie, affects the accident," says Silva. For the next six months, the president of Sincor-SP said that there will be new arrangements.
Profit Margin
Another factor that helps in the rising price of insurance is to reduce the basic interest rate (Selic). As insurers use financial transactions to make a profit and that financial gain is reflected in accordance with the rates, with falling Selic companies lose profits. To increase the profit margin, they pass on this loss for the contract price. "The operational gain of insurance is minimal or even no, because of the accident and administrative costs. The company then offset gains and passes the cost to the consumer, "explains the director of the Major Insurance brokerage.
Market reaction
The premium is not affected by natural inputs of the economy, such as increased sales of new vehicles, but insurers are. The market for auto insurance is expected to grow by an average of 10% in the coming years. Besides the increase in the stock, which has injected impetus into the insurance is the very change of attitude of the consumer. "In general, the importance of insurance is increasingly being perceived by the consumer, which is natural for a stable economy. The question of stability of the currency allowed the Brazilian to plan, "says the director of Susep.
Even more optimistic, the president of Sincor-SP believes that growth should be even higher this year, around 15%. He said that if confirmed in 2010 for the resumption of the general market, the expansion could reach 18%. "The portfolio of auto insurance is among the fastest growing. Mainly, because in times of crisis everyone wants to ensure their well, "said Leoncio de Arruda. According to surveys of entities in the sector, 30% of vehicles in the country are insured.
Source: G1
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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