Price Increases in the Insurance Sector
Elena Sanz, CEO of Mapfre in Spain, said on Wednesday, June 19, that all insurers are raising prices in Spain, although some do not admit it. Sanz explained that in the case of Mapfre, the increases are personalized according to the client and the risk, with special incidence in the automobile branch.
Factors of Price Increase
Speaking at an APIE course at the Menéndez Pelayo International University, Sanz justified the rise in car insurance rates by the increase in the prices of components and labour. He recalled that this segment continues to make losses and that the company is working to make it profitable as soon as possible.
Impact of Inflation on Other Sectors
In the health sector, inflation is also putting pressure on prices, although not as significantly as it is in the supply chain costs that affect car parts. In the home sector, the situation is similar, although less critical.
Muface Conditions and Participation in Public Competitions
Regarding the health insurance for Muface civil servants, provided by SegurCaixa Adeslas, Asisa and DKV, Sanz commented that these companies are registering operating losses due to the high accident rate and the outdated prices of the agreement. Sanz indicated that Mapfre could study the conditions of the public tender that the Government will launch after the summer, but they will only participate if it is profitable.
Review of Extraordinary Risks
Sanz advocated updating the extraordinary risks covered by the Insurance Compensation Consortium to reduce the gap between what insurers and this entity assume. Episodes such as the Filomena snowstorm are not currently covered.
Reverse Mortgage and Use of AI
Regarding reverse mortgages, Sanz highlighted that Mapfre, in collaboration with Banco Santander, offers this product to seniors to supplement their income. Mapfre started this service in Madrid and plans to expand to other regions in a gradual and transparent manner.
Regarding artificial intelligence (AI), Sanz mentioned that Mapfre has more than 200 AI projects underway. However, he pointed out that AI adoption is more common in large companies than in SMEs, advocating for greater public-private collaboration and subsidies to democratize access to these technologies.
Sanz also stressed the importance of balanced AI regulation that protects against risks without hindering European competitiveness.
