Metlife unit seeks alternative distribution channels

Metlife Mexico is exploring alternative distribution channels in order to build on its existing sales platform of brokers and agents, a company executive told BNamericas. "We are looking to add value to the information an insurance company like ours has; data base projects like telemarketing, mail, etc. That is something we aren't doing now," Metlife Mexico spokesperson Ernesto Ramírez said in an interview. The company also sees opportunity to fill certain gaps in its product line up with new investment products and insurance lines the parent Metlife offers in the United States, but not in Mexico. Metlife Mexico and other pure play insurers face stiff competition from rivals like Seguros Inbursa and Seguros Banamex that enjoy the backing and logistical support of large banking groups. Banks have been eager to take advantage of their branch networks and customer base to cross-sell insurance products under the bankassurance concept. Metlife is no stranger to bankassurance distribution. In Chile, MetLife acquired 49.9% of state bank BancoEstado's insurance brokerage last September for an initial payment of US$30mn. While a bankassurance tie-up isn't on the cards for Metlife Mexico at the moment, Ramírez said the company has an open mind about that kind of distribution channel. For now, Metlife Mexico is focusing on joint-marketing initiatives with companies like American Express. "We have some projects with American Express. We are selling products through credit cards and we are looking to sell some things through department stores," he said. New York-based Metlife (NYSE: MET) boosted its presence in Mexico through the acquisition of state-run insurance company Aseguradora Hidalgo in 2002, which it subsequently merged with its existing operation Seguros Genesis. Metlife Mexico shares second place with ING's local insurance unit Seguros Comercial America, reporting a 15% market share on premiums of 21bn pesos in 2004. As part of its strategy to broaden its product offering beyond life insurance, the company opened a pension fund manager Afore Metlife in January.