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Reinvention after covid challenges of the insurance sector – El Nacional

Bávaro.- The survival and contributions of the insurance sector to the Dominican economy and other Central American nations go through challenges that include reinvention in the face of the impact of covid-19, cyber crime, catastrophes caused by climate change and new technology, insurers and reinsurers assured meeting at an international congress.

The challenges are faced in a context of low interest rates, low profitability, increased overall costs at a global level, and vandalism caused by social movements affected by the decline in economies as a result of the pandemic.

In the opening conference-panel of the XVIII Congress of Insurers and Reinsurers, held in this tourist area, specialists agree that the reinvention of strategies, the reformulation of products and better premium offers that cover emerging risks will be key in the recovery of a sector that in the Dominican Republic has grown 11 percent this year.

In the event organized by the Dominican Chamber of Insurers and Reinsurers (CADOAR), as the host entity, they specified that the threats go through soft prices, deficiencies in premiums in an interconnected world, a pandemic still in development, high losses due to climate change and other secondary risks.

They specified that risks such as social inflation also persist, which will impact the losses of insurance and reinsurance companies, insufficient reserves and vulnerable environments.

Horst Agata, marketing manager for multinational reinsurer Gen Re, served as a speaker on a panel that included Jairo Zambrano, from Meraki Consultores LLC; Raúl Alba and Santiago Morel from Transforma. It was moderated by James García, president of CADOAR.

Agata assured that the social subsidies maintained by the governments will push low interest rates, which he considers a problem for insurers in their financial profitability.

The reinsurance and marketing expert observed that another problem is cybercrime, of which he assures the sector is not fully prepared to face it.

“Cyber ​​crime is increasingly complex and the damages can be many for the sector, even more compared to covid-19,” he said.

He commented that costs for insurance and reinsurance companies have risen, including office expenses, broker payments, salaries and others.

“Three hurricanes have cost 100 billion dollars in losses,” he said, adding that unforeseen events represent 50 percent of the sector’s losses globally.

More than 400 representatives of the sector and 24 companies participate in the congress of insurers and reinsurers. It began this Monday and will culminate this Wednesday, with an agenda of discussions organized in four panels.

The congress specialized in insurance takes place at the Hard Rock Punta Cana hotel.

By Pedro Angel

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