AMIS proposes a strategy for an “insured Mexico” to the next government

Mexico City. Mexico is the only country in the Organization for Economic Cooperation and Development (OECD) that does not have a general policy of protection for victims of road accidents, despite the fact that traffic incidents are one of the 10 main causes of death in the country. Mexican population, revealed the Mexican Association of Insurance Institutions (AMIS).

Thus, each year, road accidents represent an amount of 32 billion pesos for public spending.

“With victim protection insurance, these resources could be optimized and used for other more pressing needs,” said Juan Patricio Riveroll, president of AMIS.

Within the framework of the 33rd Insurers Convention and facing a new administration starting October 1, the president of AMIS proposed promoting the homologation of the Federal Roads, Bridges and Motor Transportation Law, as well as state laws with the General Law of Mobility and Road Safety to make Civil Liability Insurance mandatory throughout the national territory, as well as include oversight mechanisms for Civil Liability Insurance.

Likewise, in Mexico there is an aging population, in addition to the fact that a large part of them suffer from chronic degenerative diseases that demand specialized medical attention.

“We believe that the financial viability of health systems must be strengthened to guarantee access to quality health for all inhabitants of Mexico.

“For this reason, we seek to promote the participation of private insurance in health financing and as a complement to public services to reduce out-of-pocket spending, promote regulations that guarantee safety, availability and sufficient information for the patient in the private sphere, as well as increasing access to health services to all strata of the population by helping the government by promoting regulations that facilitate this support,” Riveroll highlighted.

The insurance sector has developed a series of proposals with a social vision reflected in the document called “Insured Mexico”, which they are already delivering to the presidential candidates for their study and use for their next administration.

Climate change and old age

Mexico has a high catastrophic risk due to natural phenomena that have increased in frequency and severity in recent years. It is estimated that 77 million Mexicans are vulnerable to these phenomena, coupled with the low level of insurance that is only equivalent to 2.4 of the gross domestic product (GDP), a figure lower than the OECD average, which is around 9.0 percent.

For this reason, AMIS, made up of 85 insurance companies in Mexico, considered that it is necessary to promote mechanisms to promote the voluntary insurance of companies and families through joint strategies with the public sector, as well as the participation of the private sector.

Promote a study of comprehensive risk management in all states, and the use of parametric insurance that socializes the benefits of insurance for the population and for governments.

By 2050, it is estimated that 17 percent of the population of men and 20 percent of the population of women in Mexico will be 65 years old or older, and although reforms have been carried out to achieve a good quality of life at the time of retirement, it is still insufficient.

And the fact is that 60 percent of the economically active population (EAP) works independently and does not have mechanisms that encourage savings for retirement, which is why we propose expanding the scope and modalities of life annuities that allow diversifying the offer, the promotion and encouragement of personal retirement plans that complement the efforts made by social security.

“Mexico has many independent professionals, there are many people not included in the part of the retirement savings system (SAR) and mechanisms must be designed for that stage and for the entire population. It is important to have several tools and different products to serve different segments of the population,” said Guillermo Zamarripa, president of the Mexican Association of Retirement Fund Administrators (Amafore), regarding the AMIS proposal.