Today we have a strong, growing insurance sector, he said.
In 2015, the insurance industry recorded real growth of 7.3% in the sale of premiums, and has maintained average annual growth of 5.7% in the last decade, he declared.
• The fact that this industry is growing means that more families and businesses are protected from various eventualities.
President Enrique Peña Nieto today announced new products that ensure stability and asset protection for Mexican families, while seeking to achieve financial inclusion and boost the formal economy.
After noting that, “The insurance sector has become an ally of the government in boosting financial inclusion and the formalization of employment,” the president recalled that the Insurance Package for PROSPERA Beneficiary Families, called BANSEFIMAS, was created last year.
He noted that among other supports, this scheme provides life insurance for the beneficiary, his or her spouse and children, and to date 370,000 policies protecting the same number of families have been issued.
At the 26th Convention of Mexican Insurance Companies, President Peña Nieto said that as a result of this positive experience, the government and the Mexican Association of Insurance Institutions (AMIS) have worked to design new insurance products.
The first, he said, “Is derived from the strategic alliance between AMIS and the National Savings and Financial Services Bank (BANSEFI), which will enhance the BANSEFIMAS program. The aim is to extend the benefits of the policies from 370,000 families to the 6.4 million families that are PROSPERA beneficiaries.”
He said the second product, “Is life insurance for taxpayers enrolled in the Fiscal Incorporation Regime (RIF) . As from the second half of this year, citizens in the RIF will be able to acquire life insurance for the head of the household and his or her relatives at very low cost, using the SAT portal technology platform. This insurance can be purchased online and will simply require the applicant’s tax number.”
He noted that this protection, “Is a further incentive to join the formal economy and is also available to all taxpayers who are already enrolled in the Fiscal Incorporation Regime, which to date totals 4.5 million citizens.”
In short, he declared, “These are two products to ensure stability and asset protection for Mexican families, while seeking to achieve financial inclusion and boost the formal economy.”
After noting that the Law of Insurance and Sureties Institutions is contributing to the strength and dynamism of this innovative industry, the president said that, “Thanks to the joint efforts of the insurance industry and the authorities in this sector, the implementation of the new regulatory framework is progressing in an orderly manner.”
He added that even more importantly, “The Mexican insurance industry is changing and evolving in favor of users, particularly those who until recently had no access to its services.”
“Today, we have a strong, growing insurance sector,” he said, and subsequently announced figures confirming this:
“In 2015, the insurance industry recorded real growth of 7.3% in the sale of premiums, and has maintained average annual growth of 5.7% in the past ten years.” During the same period, from 2006 to 2015, the sector's share of the economy has also been steadily increasing , from 1.8% of GDP, to 2.2% last year. It went from 1.8 percent of the gross domestic product, to 2.2 percent last year," he explained.
“The fact that this industry is growing means that more families and businesses are protected from various eventualities.”
The president thanked the insurance industry: "The work you do translates into greater peace of mind and certainty, but also into real, effective protection from adverse situations that may arise in life.”
He also congratulated them on the European Commission’s acknowledgement of the new regulatory framework in Mexico, “which places our country at the forefront of corporate governance, transparency and companies’ financial solvency.”
At the event, President Peña Nieto presented awards to the winners of competitions "Grow Safe" and "Prosper Safely with Productivity,” organized by AMIS.
WITH THE REFORM OF THE INSURANCE AND SURETIES LAW, MEXICO HAS TAKEN A SIGNIFICANT STEP TOWARDS ADOPTING THE BEST INTERNATIONAL STANDARDS: LUIS VIDEGARAY CASO
Luis Videgaray Caso, Secretary of Finance and Public Credit, said that with the entry into force of the Amendment to the Law on Insurance and Sureties, Mexico has taken a significant step towards the adoption of the best international standards for transparency, corporate governance and the use of insurance companies’ capital.
He said that Mexico is one of the first countries to be recognized by the European Union for having fully implemented the Solvency Methodology II. This, he explained, “Has allowed us to have a modern, well-trained insurance sector to be able to continue growing.”
He declared that the insurance industry, “Is breaking down barriers, and daring to work hand in hand with the public sector to provide insurance for disadvantaged, vulnerable sectors that had traditionally not had access to financial services.”
Thus, he added, AMIS is becoming an ally in financial inclusion, by providing insurance through public instruments, such as the PROSPERA programs through BANSEFI.
He said that, “We are leveraging very significant synergies to design products that are cost efficient. Thus for example, you can give more than six million PROSPERA women beneficiaries insurance at a competitive cost. First of all, life insurance, but in a package we are working on to extend to other types of insurance, with a number of value added services.”
Likewise, he said, “We are also launching an ambitious program, both technically and socially, to give small taxpayers and small businesses that have decided to bet on formality access to insurance through the Fiscal Incorporation Regime in coordination with the Tax Administration Service.”
He congratulated the insurance sector, “On its conviction, on its social vocation that goes beyond what has traditionally been done and which will undoubtedly generate a stream of new customers for the insurance industry in the future.”
MEXICO HAS A SOLID, SOLVENT INSURANCE SECTOR THAT IS READY TO GROW: MARIO VELA, PRESIDENT OF AMIS
President of AMIS Mario Vela Berrondo said the country has a solid, solvent insurance sector that is ready to grow and at the same time thanked President Enrique Peña Nieto for his work for the benefit of Mexico. Proof of this, he said, is the adoption of major structural reforms, which will have an unprecedented impact on the nation’s economic and social development.
He stressed that in a complex, volatile environment, “We achieved a stable, macroeconomic framework with a solid financial system and an insurance system that has never failed in Mexico.” Therefore, he said, “The announcement of public spending cuts, which is preventive and does not have a major impact on growth, is a clear reflection of the government’s commitment to stability.”
He said that the insurance sector plays an increasingly important role in the lives of Mexicans because, he said, in 2015, the sector grew at three times the rate of the economy.
“We ensure the peace of mind of more than 28 million people; we cover over six thousand accidents every day; we protect 99 billion pesos in insured amounts, equivalent to more than six times the country's gross domestic product,” he said.
He added that the insurance industry has major effects on the economy, since it contributes to economic growth by enabling people to take risks, thereby promoting greater entrepreneurial activity.
He added that it is one of the most important drivers of the formal economy.
He informed President Enrique Peña Nieto that AMIS conducted a study entitled: Technology and Innovation in Insurance Institutions, in which the world’s most outstanding examples of technology use in insurance are analyzed. At the end of his message, he gave President Enrique Peña Nieto the study in an eBook.
He stressed that among most important issues on the joint agenda with the government, it was agreed to give life insurance to 3.2 million beneficiaries of the PROSPERA program, and to work on schemes that will increase the transparency of purchasing government insurance. He added that, “We set out to insure those that have enrolled in the Fiscal Incorporation Regime, the RIF, and provide supplementary insurance for families in extreme poverty, so that they have additional protection to what is currently provided by FONDEN.”