Segurexpo, an insurer that offers solutions in the credit and compliance lines, and which was recently acquired by the International Consortium of Credit Insurers (Ciac), belonging to the Cesce Group, is already preparing to launch its new image that will reflect the concept of its parent company. Manuel Arévalo, general manager of the company, highlighted that, as of June 2022, they register accumulated profits of $4,000 million and have more than 1,300 clients.
What is that stock change they made in 2021? Since July of last year we have been a company that belongs 100% to the Cesce Group. The new support that we have offers a fairly broad solidity because in the end the main shareholder of that group is the Spanish Government.
What does the image change consist of? What do you want to reflect?
We have a very close image and brand change, which we will announce to the market this week. We seek to update ourselves and show that we are a rejuvenated company, with an interesting past. What we want to show is that we are closer to our clients; and also that strength and support from our parent company, showing that we are part of a powerful multinational group and that we can bring all the know-how.
What are the insurance options offered to the market?
We have two branches, one of them is credit insurance, which guarantees non-payment of invoices. Our policyholders are calm because on the due date, if they are not paid, we initiate a recovery process and, if we are not successful, we indemnify 93% of the unpaid value. And in the compliance branch, we support the bondholder in the execution of projects that have arisen from a contract with a public or private entity.
What is the balance in terms of written premiums in both branches?
Last year was quite positive for the company in the evolution of premiums in both lines; In credit insurance, we closed with premiums of $38,000 million, which represents an increase of 50% compared to 2020. In the compliance line, we grew 17% compared to the 10% we had forecast. As a company we closed with revenues of $71,000 million in premiums, which meant a growth of 33%. This year, in credit insurance prices we are growing 42% at the end of June, and in compliance, up to 13%.
What are the innovations that you are going to launch this year?
Let’s democratize the safe of credit, we have been working on insurance for SMEs, which has a different cost structure because it has other coverage. The product is ready, we are looking for an ally to have access to that company profile. That is the bet to grow in utility, but also to reach this segment of companies. Another bet is to try to improve, through technology, the processes on the platform.
What are the projections for the end of the year, both in terms of premiums and profits?
We are doing much better than we had budgeted, there is a key component in the result and it is the accident rate. Last year we closed with a profit of $5,500 million against a budget of $1,000 million, which reflects the good dynamics we had, and this year, the trend is in good line, and at the end of June we have accumulated profits of almost $4,000 million .
How did the payment of claims behave?
When the confinement began, the cessation of operations caused us to have many notices of claims in credit insurance; but since there were facilities from the banks, in the end the dynamics were more positive than expected. However, the stoppages had an impact and we began to see an increase in the volume of claims notices. Since then we have seen that the trend has been growing, on average a volume of 80 to 110 monthly notices can be reported and the values of these reports range between $4,000 and $6,000 million.
Do you think that the current situation has led to an increase in claims?
The accident rate was numb because the economy was numb. Today, with interest rates that are on the rise, companies are going to have more difficulties in their cash and are going to continue to default. We anticipate that the trend will continue and the loss ratio will rise.
What are the main barriers in business insurance?
The main barrier may be that belief that entrepreneurs have that they know their clients very well, that they are good and that they will never stop paying, and that is not the case. It is a matter of culture and risk perception. Another barrier is cost, but people must understand that they are protecting their main asset.
What are the prospects for the new government?
We are thinking of making proposals to reconsider the regulation, which allows the insurance sector to be able to support medium and long-term projects.
THE PROFILE
Manuel Eduardo Arévalo Esguerra has a degree in Business Administration from the University of Rosario, and an MBA from Schiller International University (London).
In 2001, he joined Helm Bank, where he held the position of commercial manager for four years. In addition, in 2005 he joined Coface Colombia as president, and as of 2020 he began to work as general manager of Segurexpo de Colombia. His biggest challenge is to guide the company towards an excellent service.
–
