Insurance companies survive with health policies in Venezuela


Venezuelan health personnel have warned on multiple occasions that they do not have enough material to protect themselves from covid-19 in the country’s public hospitals. EFE / Rayner Peña / File

As the International Day of Insurance Producers is celebrated today, the 2001 team consulted two producers about the current situation of the business of insurance companies in Venezuela.

By diary 2001online.com

The insurance broker, José Gregorio Pacheco, affirmed that the business continues without experiencing a significant improvement.

“As long as the country’s economy does not come out of the decline, the insurance business will continue to struggle to stay on its feet, in the face of unbridled inflation in medical services.”

He stressed that people make sacrifices to buy the policies that they see as the highest priority, such as health policies.

“Insurance brokers and insurers currently survive largely on health premiums.”

He commented that what is most insured is health and the premiums range from approximately $400 for a minor, up to $8,000 or $10,000 for a family of five, depending on the age and coverage of the policies.

lit Pacheco emphasized that it is still a very small percentage of the population that can take out individual policies.

“There is a sector of the population that enjoys health coverage thanks to the benefits of group policies offered by companies to their workers.”

He specified that insuring a vehicle with Total Loss coverage can cost from $350, business from $250, home from $100.

It all depends on the amount and type of benefits that the client wants. Demand is up 30%.

Planes. The insurance broker, Luís Pereira, indicated that in Venezuela people continue to buy insurance policies, but “they focus on health, they look for low-coverage alternatives, $10,000, $20,000, $50,000 sum insured plans.”

This creates an imbalance in the portfolio of insurers because it makes them very susceptible to claims due to the fact that health claims are very frequent.

He commented that insurers have reinvented themselves to survive and are juggling to pay providers.

Brokers also migrate their portfolios, some are looking for more accessible products with lower premiums.

“The corridor remains, the most affected is the one that has been in the market for a short time, the one that has a mature, broad portfolio, can withstand the ups and downs of the market, we have survived,” he said.

He specified that insurance policies are not so far away for Venezuelans because insurers have a wide range of coverage.

For example, Seguros Mercantil has coverage from $5,000 to $200,000. Monthly premiums can be as high as $90-$120, depending on coverage.

Insurance premiums, especially health, increased from 30% to 50%.

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