Regulator to prioritize low-income insurance in 2004

Brazil's insurance regulator Susep has set its 2004 focus on getting insurance products to Brazil's lower income groups, Brazilian news agency Agencia Brasil quoted Susep's head Rene Garcia as saying. According to Garcia, the cost of insurance premiums needs to be reduced, through the creation of products targeted specifically to poorer segments of the population. Currently Susep is mapping out a strategy to increase insurance penetration in the low-income C and D socio-economic groups in partnership with Brazil's national private insurers' federation Fenaseg. "The bank fee for an insurance policy is near 3 reais (US$1.03), which corresponds to the average price of the policy itself," Garcia said. In the state of Rio de Janeiro only 6% of Brazil's C and D socio-economic strata are interested in buying insurance products, compared to 18% among the wealthier classes, Garcia added. The insurance industry in Brazil is responsible for 3.2% of the country's gross domestic product (GDP).