The fall reported by the production and sale of new cars in the country has caused the insurance sector, in the car insurance segment, to register a decrease in premium placement of 4.9% in 2021, according to data from the National Commission of Insurance and Bonds (CNSF).
The 10.1% drop in the production and sale of new automobiles during the fourth quarter, which took sales to their lowest level for a year-end in the last two decades, caused by the shortage of supplies and semiconductors, impacted insurance companies in the placement of car premiums and therefore in the profits obtained in this segment, was reported in the report “Analytical Overview of the Insurance and Bonding Sector” of the CNSF.
While contracts in this branch reported a drop of almost 5%, the accident rate showed an increase of 5.3%, which is mainly related to the normalization of activities where the circulation of automobiles was resumed.
Within the report with figures for 2021, the CNSF highlighted that the drop in the issuance of premiums and the increase in claims due to the reopening of activities, led to the auto line showing a contraction in profits of 35.8% to be located at 13,000 million pesos.
For this year, changes in mobility related to remote work, that is, the home office and the use of alternative means of transportation will affect the issuance of premiums in the auto industry, the Commission warned.
Currently the insurers that concentrate the car insurance market in Mexico are Quálitas, GNP, Chubb, AXA and HDI Seguros.
Recently, the Mexican Association of Insurance Institutions (AMIS), reported that the prices of car policies have remained relatively low and that it will be up to each company to modify this trend.