AXA forecasts personal accident coverage growth in LatAm
There is a growing appetite in some Latin American markets for personal accident coverage, an insurance policy that pays out if an individual dies suddenly or is critically injured and unable to work, according to Philippe François, global head of business development, AXA Life and Health Reinsurance.
He said that as the middle-class population in many countries grows, there is an increasing willingness for people to protect their family and lifestyle against an unforeseen accident. He noted that increased wealth and affluence often go hand in hand with individuals having more free time to pursue hobbies and activities such as sports, home improvement activities, etc. This often leads to the logic that such activities can result in accidents rendering people unable to work, and makes them open to buying such coverage.
In term of distribution strategy, many markets already have established bancassurance companies, for example, which are often an ideal way to distribute the product perfectly adapted in terms of design and underwriting process.
“In our experience, when a country starts to develop a culture that understands and accepts insurance, this is often one of the first products that can be sold as it is relatively simple and easy to understand,” François said. He added that this type of personal accident product has a great market potential in the Chile and also in countries with a growing middle class such as Peru, Colombia and Mexico.
François added that AXA, particularly in France, has vast experience designing, managing and selling similar personal accident products in other markets and can assist their development in Latin America using AXA’s long track record and experience in this business
He explained that the nature of the product can be adapted to the specific needs of each market, from paying out a lump sum to more complex products that are aligned to income protection on a monthly basis.
“AXA France has been a key player in the development of that business in France, where the ‘Family Protection’ product is a great success for the local intermediaries and a differentiating offer to provide to clients,” François said.
“We plan to launch new products in some Latin American markets to respond to the growing insurance needs of the new middle class and help local insurance companies differentiate themselves in a more competitive market.”
Don't miss the latest industry news - Sign up to our free email newsletters
More storeis from the FIDES Day Three Newsletter
Big insurers exit LatAm on back of poor performance
FIDES 2017 highlights opportunities for LatAm insurance industry
Reinsurance rates out of sync with other regions
Protection gap the main talking point at FIDES 2017
Do regulators understand insurtech?
Austerity heavy on Central America and Caribbean economies
Gen Re talks regulatory requests and new opportunities
Argo Group opens Miami office to tackle LatAm market
LatAm recovery strengthens as election cycle starts
Microinsurance covers 52m people in LatAm
Re/insurers prepare for growth in LatAm
PartnerRe aims to double its market share in LatAm
Rates and retentions: main concerns of brokers
Lessons learned from Mexico earthquakes
Earthquakes may sour appetite of ILS investors
