The arrival of Chinese cars in Mexico, nearsoring and a rate adjustment to policies, influenced the total issued premium of the automotive insurance market to grow 28.7 percent annually in the first half of the year.
According to the data, during that period the total premium amounted to 92,199 million pesos, according to the Report on the Automobile Insurance Sector in Mexico prepared by the Quálitas company and published in August.
Juan Carlos Alonso, managing partner of Autos at Grupo Interesase, explained that this growth is driven by multiple factors, including the arrival of Chinese brands, nearshoring and an adjustment in policy rates. He recalled that the volume of new units from automakers has grown and banks have encouraged these units to be issued with insurance, with Quálitas being one of the main players.
“On the other hand, the arrival of new brands, the famous Chinese brands that have arrived in the country are bringing inventory and that inventory is also being financed and has helped ensure that those vehicles are insured,” he said when asked about the report.
He commented that with nearshoring, investors are acquiring vehicles that need to be insured, or new companies are also insuring their fleets. He added that the labor force in the automotive sector has increased and with it the average cost of the claim, which has led insurers to adjust their rates on policies. The Report shows that the growth in the issuance of the five largest companies in this market was 33.4 percent. Meanwhile, medium-sized insurers had a growth of 17.7 percent, and the rest of the insurers reported a growth of 21.0 percent, the document shows. This led to the net result of the market being placed at 5 thousand 828 million pesos in the first semester, an increase of 258.9 percent. In line with the trend of recent years, more than 70 percent of the automotive insurance market is served by the five largest companies: Quálitas, GNP, Chubb, AXA and BBVA; Quaitas continues to be the leading insurer in the sector with 33.1 percent of market share.
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