Pets, bicycles and electronic devices emerge as new insurances in Chile

IN THE CASE OF CELL PHONES, GROWTH REACHES TWO DIGITS

Changes and sophistications have also been consolidated in the more traditional life and general insurance, especially in cars.

If general insurance against fire, theft or for the car were the usual in our country, today the trend is that the things that Chileans are valuing and protecting are so various such as a drone or a scooter. And in life insurance, the offer includes pets. The Consorcio policy reimburses veterinary medical expenses for accidents and / or illness suffered by the pet, 70% coverage up to an amount of UF 12 per year, with a maximum of three events per year.

Sura also covers veterinary expenses and includes the option of a pet hotel that can be used twice a year, with a maximum of five days. Southbridge Insurance Company also plan to enter this new segment. The commercial director, Joanna Knoeppchen, indicates that ‘with the new Law of Responsible Ownership of Pets a new niche is opened. According to the figures, six out of 10 households have at least one pet, ‘he says. In the general insurance segment, auto insurance has evolved.

The mass insurance manager of FR Group Corredores de Seguros, Alejandro Novoa, points out that it is the policy with the highest increase in online purchases. ‘Its coverage has become more sophisticated, considering premiums for use or mileage, which has been in response to the new, more urban generations, where they see the car as a type of weekend transport and seek insurance that covers these needs’ , he remarks. Novoa maintains that one of the products that has grown the most in the last five years, at double-digit rates, is insurance to protect electronic devices.

In this product, the premium ranges from 15% to 35% of the value in the case of cell phones, for example. From Southbridge, bicycle insurance stands out, considering that only in Santiago there are about 1.1 million trips a day by bicycle. ‘This figure will increase. We are developing insurance that protects the cyclist, but also the bicycle, a comprehensive insurance ‘, they specify. Scooters, light electric vehicles and drones are other assets that the new generations are also insuring.

‘Millennials and centennials are doing more physical activity and due to the demand of our clients, we are also developing these insurances’, point out from FR Group. According to data from the Chilean Insurers Association, health insurance, guarantee and credit insurance are the ones that have been gaining the most ground. Both have grown 25.5% and 17.7% respectively, as of the third quarter of 2018.

More women

Another trend that draws attention is the rise in female participation in life insurance contracts. According to MetLife figures, this segment ‘has been growing consistently over the last 10 years and in 2018 accounted for 44% of new sales’.

In more detail, the increase in university insurance stands out, which grew by ten points, and the APV (Voluntary Pension Savings), which increased by nine points in the last 10 years. “The increase in the Women section in university insurance and APV products reveals how women are increasingly taking charge of their children’s education and savings,” they explain.

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