Insurance companies paid USD 150 million for the coronavirus

Due to the effects of the pandemic caused by Covid-19, life insurance delivered USD 150 million.

In the last year, private health insurance stopped being a luxury thing to become a priority expense that is above vehicle insurance.

After the collapse of the public health system, citizens now understand the importance of covering themselves against possible personal risks.

For the secretary of the Federation of Insurance Companies (Fedeseg), Patricio Salas, health and life insurance went from being a luxury item to a basic input in the family basket.

According to the Fedeseg, some 200,000 people currently have health insurance and about 4 million are covered with some type of life, accident or relief coverage that, for example, is obtained by accessing a loan in order to protect the Familiar patrimony.

This is a new medium and long-term opportunity for this sector that sees changes in the consumer.

According to Fedeseg, until August, the sale of premiums totaled USD 1,084 million, 4% less than the same period in 2020, when the health crisis began.

Among the few segments that grew are collective life and medical assistance at 5.3% and 1.6%, respectively.

Although sales rose, claims for claims also increased.

Salas said that from March 2020 to August of this year, 15,000 cases of deaths related to coronavirus have been attended, a figure that is equivalent to about USD 150 million paid as part of life insurance.

Regarding life insurance, he explained that for every $ 100 sold, $ 80 is returned to clients for claims.

This is the highest figure in the history of insurance in Ecuador, according to Fedeseg. For example, in 2019 only between USD 39 and USD 44 was returned.

The high demand generated delays in payments. The rest that remains is to cover costs and other expenses.

A second change in consumer behavior is the search for new products such as pet insurance, education and heritage issues.

In addition to these changes, the client seeks economic services. Insurers aim to capture a larger universe of clients by targeting a segment of people with monthly income of less than USD 1,000.

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