In times of inflation like the ones we are experiencing, insurers face chiaroscuro. On the one hand, the increase in prices and interest rates increases the savings of customers who invest in UDIS, but on the other hand, the costs of both medical and car claims also rise.
With one – much higher than the current 8.15% – the insurer Axa negotiates with its providers so that the high costs do not translate into more expensive policies for its Mexican clients.
In an interview with Expansión, Daniel Bandle, CEO of Axa, warns that medical inflation, which is growing at double-digit rates, could bankrupt the private medical system.
“If this growth in inflation continues, the private health system in Mexico is going to go bankrupt, I am deeply convinced of this because it is not sustainable that year after year you have these important increases (in prices), then we all have to do something together to Stop this,” he said.
The director stressed that the forecasts of the specialists made the calculations with an inflation that would close the year at rates between 4% and 5%, what they did not know is that a military conflict would cross between Russia and Ukraine, modifying all the analyses.
With double-digit medical inflation, policy costs haven’t been able to come down, according to Bandle. In order to continue paying the policies, users have had to lower the insured amount or change the hospital level where they will be treated.
After the launch of Axa Keralty, a primary medical care that covers 10 specialties, the company of French origin seeks to improve the quality of life of its clients. To date, they have given 123,000 consultations under this scheme and the most requested specialists are general medicine, pediatrics, psychology, physiotherapy and nutrition.
“The idea is to detect much earlier if someone has a disease or is at risk of suffering it to make our policyholders healthier,” he said.
Regarding the consequences of Covid and its possible impact on insurers in the following years, Axa considers that it is too early to determine what could be the diseases that Mexicans will suffer from in the future.
In addition, for the auto division, the insurer has had to negotiate with auto parts suppliers as claims have also become more expensive and parts arrive slower due to problems in supply chains.
Axa has an 8.2% market share in auto policies issued as of the first half of 2022, according to AMIS data.
