A stimulating three days promised at FIDES

Insurance and catastrophes, demographic change, regulation and new insurance trends will be on the agenda at FIDES this year, says Jorge Claude, executive vice president of the Chilean Association of Insurers (AACH) and a member of the FIDES organising committee.

“In the academic programme we have managed to bring together high level speakers with a lot of experience, who will share their views from different fields in the industry,” he said. “We are very happy because outstanding people have accepted our invitation and I think the whole programme is of a high standard.

“The contributions of the former president Ricardo Lagos, of John Nelson, president of Lloyd’s, and Pina Albo of Munich Re, and every panel member, will bring a lot to the attendees.”

Since 1950 no Hemispheric Conference has been held in Santiago and therefore it is a huge challenge for the entire team of the association and organising committee, said Claude.

“Having the international insurance world meet in our country for three days is an opportunity to show the world the progress and maturity of our country and market, and it is a great honour.

“We have 1,400 people registered, coming from more than 40 countries. We have had such unexpected success that we have had to close registrations two months before the conference. It has been a great project, which we have taken on with much enthusiasm and for which we have been preparing for more than two years.

“We hope that the conference enables us to strengthen relations within the industry and encourage learning between different participants, in accordance with the specific experience of each person.”

The AACH is one of the longest-standing groups in Latin America, with a track record of 116 years. Its mission consists of driving the sustainable growth of the Insurance Industry, strengthening the positioning of insurance as a support to development, representing the industry and contributing a valid and reliable technical opinion.

“Our organisation seeks to drive development in the insurance industry while at the same time being the benchmark company to represent the industry, which can rely on a recognised and respected opinion,” said Claude.

Currently the AACH brings together more than 99 percent of the insurance premiums, as 55 of the 65 insurance companies which operate in Chile are members.

The group has been the pioneer in practising transparency. For the last 14 years the Self-Regulatory Board of the insurance companies has been in force, which ensures best practice in the industry. In addition, eight years ago, the role of Insurance Ombudsman came into operation, which is an independent authority, resolving small conflicts which arise and is mandatory in disputes for companies associated with the AACH.

“The Self-Regulating Board has a preventive function,” says Claude. “Its objective is to improve the performance of the insurance market, with strict adherence to the principles of fair competition and good faith which should exist between insurance companies and insured parties.

“The insurance industry has filled an important social role at key points in the history of Chile and we are proud to make contributions, which go beyond our business,” he continued.

The earthquake on February 27, 2010 is a case in point. It was the largest disaster that the Chilean insurance industry has had to face on a global scale and the industry responded efficiently to losses of $24 billion, equivalent to 12 percent of the Chilean GDP, said Claude.

Overall, the insurance industry paid out almost $8 billion in insured losses, representing 25 percent of coverage. Approximately 230,000 claims were handled, corresponding to more than seven years’ work. As at December 2010, 99 percent of the housing claims had been settled, with indemnities of approximately $1.2 million on this concept alone.

“The Inter American Federation of Insurance Companies made special mention of the Chilean insurance industry for its excellent handling of the earthquake,” said Claude. “Our work helped thousands of people to quickly get back on their feet following this tragedy, enabling them to rebuild their homes and companies and quickly get back to normal.”

Their work did not stop there. Following this national tragedy, the insurance industry brought together more than 40 international experts to drive the creation of the first tsunami and earthquake risk map, the objective of which is to provide its own and local understanding of these catastrophic risks.

The initiative will bring benefits not only to the insurance industry but also to the public bodies in charge of protecting the population, such as the National Emergency Office of Chile (ONEMI) to whom the industry has already provided this tool.

“This aspect of insurance fills us with pride as an industry,” he said.