Regulator to push low-income insurance in 2004

Brazil's regulatory agency for private insurers, known as Susep, plans to push insurance penetration in the low-income brackets next year, local publication Panorama Brasil quoted chief insurance regulator Rene Garcia as saying. In Brazil's low-income segment there is a potential of 10 million new insurance clients, according to Susep. Garcia said 2004 would mark the beginning of a trend toward increased interest among Brazilian insurers in tapping the low-income segment. It is difficult to estimate how many new customers the insurers will be able to capture next year but an improving economy will play to their advantage, Standard & Poor's Sao Paulo-based financial services analyst Daniel Araujo told BNamericas. Insurers' scale will be a key competitive advantage when attacking the low-income segment because this will help drive down operational costs for cheap insurance products, Garcia said. Individual life and personal accident insurance are the products that will be the best sellers in the low-income market, Garcia said, adding that coverage against unemployment and funeral expenditures could also do well. Susep and private insurers are in talks on allowing the sale of low-cost insurance products at post offices and retail stores to facilitate penetration in the low-income brackets, the official said. He added that strategic planning and public-private cooperation is key for the local insurance industry to succeed in this segment. In terms of Susep's other activities next year, the regulator will focus on providing better protection for consumers, stepping up the fight against fraud, and promoting standardized subscription practices among insurers, he said.