Mexico insurers see opportunity with AMLO austerity
As representatives from Mexico's insurance industry prepare to meet with president-elect Andrés Manuel López Obrador (AMLO) next week, local insurer association (AMIS) hopes to sign up high-level bureaucrats for individual health plans in the likely event the incoming government cuts coverage for major medical expenses as part of a broad austerity effort.
"We must always view any threat as an opportunity, as should be the strategic planning of every person, and as such, many insurance companies, as well as agents of these, are now looking for how to contact individually those who are losing these benefits, said AMIS head Recaredo Arias in an interview with Milenio TV.
Arias points out that AMLO's 50-point austerity plan is clear about cutting private health plans for high-level officials.
"These are the decisions that the new government is taking, and we have to be respectful of them and work accordingly," said Arias. "They will implement them."
Arias said that, in this scenario, the association is emphatic in recommending all those people who have these benefits to make an effort, though it may be difficult, to quickly convert what benefits they currently have to an individual plan so as not to lose their seniority in the scheme.
The executive said the industry continues to work with AMLO's transition team, noting that additional meetings will continue and he expects to hold a meeting next week to review AMLO's proposed projects and how they align with the strategies of the insurance industry.
He added it was interesting to see the variety of coincidences between AMLO's objectives and the goals of the industry. "Consequently, many of our projects are perfectly aligned with the national project."
On whether the austerity plan of the next government will have a direct impact on the insurance sector, Arias said it is evident that the industry should expect to lose some premium flows. "Given this situation ... we are also seeing how these insurance [policies] can be recovered, through the sale of individual policies."
In related news, Grupo Financiero Banorte said that although ending major medical expenses insurance for public officials could represent losses for the companies that provide this service to the federal government, the banking group's insurance business sees this as an opportunity to reach out directly to the individuals affected.
"For those public servants who wish to do so, we will be there to give them a good deal, both in terms of medical expenses and in programs that could help them have coverage so that, when they stop working, they have an accumulated savings that allows them to face their needs," Milenio reported Banorte savings and retirement director Fernando Solis Soberón as saying.
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