Market launches most popular products for automobiles

Automobile insurance companies are seeking ways to lower the cost of policies to increase the penetration of the product, especially among the new middle class. The percentage of the insured vehicle fleet rose from 18.2% in 2009 to 22.1%, according to data from the National Federation of general insurance (FenSeg), but the sector still considers this low index.
One of the main betting market is the approval in Congress of a law that creates the so-called popular insurance. Among the major measures, the Bill authorizes the use of parts used for the repair of cars. The projection is that insurance prices might fall to 40% for the most popular cars.
Apart from the price of the parts, the sector believes that the adoption of such legislation can also curb the theft of cars is another element which presses the prices of insurance policies.
"One of the basic problems for the insurance of vehicles in Brazil in relation to other countries in the world is the problem of burglary and theft. This significantly impacts the prices of policies, "said the President of FenSeg, Paulo Marraccini.
He also stated that Brazil produces about 300 thousand cars per month, but about 450 thousand cars are stolen each year. "In other words, it takes a month and a half of industry production to supply the cars being stolen. Our expectation with respect to that law is trying to disrupt this mechanism with Grand Theft Auto for sale of parts in the illegal market, the so-called Chop Shop ".
In addition to this aspect, the insurance industry believes that the use of used parts would increase demand for policies between cars with more than 5 years of use. Currently it is prohibited the use of these parts for the repair of automobiles. In this way the repair price is high, and therefore the policy is expensive.
In Brazil, 15 million cars are insured. Of this total, however, 80% have up to five years of age, only distortion that the Government and the market they want to finish with the creation of the popular insurance. The sport has the potential to more than double the insured, since fleet could reach 20 million automobiles with more than five years of age and unprotected.
Experiences Some insurance companies have already begun to offer cheaper products geared to the new middle class. In the case of Caixa Seguros, who announced this week the launch of the 12:0 am easy self. The insurance will cost $ 220 per year and can be paid up to 10 times without interest.
Customers who hire the box product will be entitled to simplified coverages with bodily injury coverage to third parties and personal injury to passengers and a 12:0 am service.
"Our bet is that this competitive product, accessible and valued a complete assistance package, allows millions of people to have a safe for the vehicle for the first time," says the Director of various risks of Caixa Seguros, Luís Alberto Charry. The product is available in the box and internet agencies in webshop of Caixa Seguros.