How do you position your company within Ecuador's broader landscape?
ROBERTO LÓPEZ RUIZ The total premiums of the insurance market in Ecuador correspond to USD1.7 billion, which are distributed among 32 insurance companies. In terms of volume of premiums, we are ranked eighth and have increased our market share in the last three years to 4%. By end-2018, we expect to record USD70 million in revenues. The market has a public company where public entities are insured, which contains premiums close to USD300 million. Therefore, the pure market that we could opt in to corresponds to a market of USD1.33 million. We must bear in mind that the insurance industry's contribution to Ecuador's GDP is still low, as the average premium per citizen is USD99. It is true that at present the market focuses on businesses; however, as the standard of living improves, the need to insure homes, cars, and lives will as well.
ALEJANDRO AROSEMENA D Ecuatoriano Suiza is an insurance company that has been around for almost 65 years. The company's business is mainly oriented to the corporate sector, though we have certain individual lines. About 80% of our portfolio is corporate, and 20% is individual. Within the corporate sector we have property insurance for fire, theft, technical lines, machinery and construction; loss of profit, liability, ship hulls, air hulls, transport, vehicles; and life insurance. About 90% of our portfolio comes through an insurance broker. There are two ways to do business: waiting for requests of insurance quotes or reaching out to customers. We prefer the second method because ultimately, there are loyalty strategies through a relationship between the broker, client, and insurer. We accompany and guide the client from the beginning of the process. While the client recovers his market and sales, we take care of the repair and reinstatement of the company's worth and value. We will continue to focus on the corporate sector and do not plan on having a radically different strategy toward other segments beyond the 20% of the individual lines we already have.
What are some of the strategies you employ?
RLR MAPFRE ATLAS is a part of the MAPFRE Group, which is active in 46 countries. We have a triennial strategic global plan from which the plan for Ecuador is derived. One of the basic pillars of this is profitable growth based on improving the operational management of the client and the human talent involved, in addition to digital transformation. For this year's strategic plan, the digital world is crucial to the relationships with our clients and strategic partners. We are investing heavily in the digital transition, mainly from the perspective of communication with all our interest groups and are working on a customer portal to allow customers to pay online. Similarly, we will have a portal for the entire management of the company. As a result, we will have an online communication between brokers, offices, and central structure. We even have a self-inspection app with which we can validate used cars across Ecuador with a few photos. For some time now, we have been sending policies by e-mail, though in a country that is still not so technologically developed, it still causes insecurity among users. Ecuador ranks second in America in terms of active lines; therefore, we are developing the growth and sale of insurance through social networks.
AAD A significant part of our portfolio comes from medium and large companies. In the coming years, we plan to focus on creating certain types of specialized products for small businesses and SMEs. We are interested in developing this segment through adequate technological tools that will enable a more agile subscription process. SMEs belong to a sector where everything is much simpler at the level of risk placement because they enter a category of automatic contracts for insurance. We can make products extremely easy to quote in order to gain more business volume.