Insurers recognize that the low cost model “has impoverished everyone”

The seed of innovation in insurance
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Insurance families increase financial savings by 3%
The seed of innovation in insurance
the insurance centre
Insurance families increase financial savings by 3%
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The low cost model has been pernicious for insurers and workshops. It has led the industry to a price war that has affected the profitability of all actors involved in auto insurance and the companies themselves recognize it.

The second day of the XI National Congress of brokers and agents analyzed this phenomenon low cost. Regarding the first point different views were shed. Antonio Escrivá, deputy general manager of the Allianz Automobile and Private Area, said that “the low cost would have some logic if it makes the market bigger.” He said that if it is not, it only leads to impoverishment. For this he indicated that in 2008 in Autos was invoiced 12,000 million euros and last year reached 10,000: “We have become impoverished,” he said.

For its part, Marià Rigau, CEO and CEO of ARAG, believes that low-cost strategies are being demonized and “I think it’s a mistake”. He believes that if you have the right structure, report it in a transparent way, target the appropriate segment and adapt the products is “perfectly legitimate and a matter of strategy.” Yes warned that low cost does not mean “sell below cost”.

In addition to companies, Lorenzo Canal, president of the Badajoz Mediators Association and José Luis Martínez, president of the Mediators’ Association of Jaén gave their opinion. The first reflected the need to focus on the value that is provided and not the price. And he said that the broker does not value his professionalism. He pointed out that “who enters by price goes by price and is not a customer, is an insured.” He also said that in this price policy the broker has to define its management and customer model and we “can not accept everything,” he said. For his part, Jose Luis Martinez mentioned that the broker must specialize and find new market niches.

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