The New Masters of Risk? How insurers are testing out their capabilities in finance
Profiles
AIG remains the undisputed leader
Founded in 1949, along with Caja de Seguros and Mapfre it is one of the leading insurance companies in Argentina.
La Meridional, which was voted the best insurer in Argentina in the Euromoney survey, is committed to developing new products and entering new markets. Chief executive Jaime Calvo says: “Argentina, as an emerging market, has many opportunities available for developing new products in different niches: for example, non-traditional insurance such as directors & officers and environmental coverage. There is also huge potential for growth in different niches through several distribution channels.”
La Meridional has also recognized the importance of diversifying away from insurance services: “We are also increasing our involvement with banks, for example Standard Bank, Santander Rio, Banco Francés BBVA and Citibank, with great results.”
Distribution is a major challenge in emerging markets. There is a lack of knowledge about insurance and the different products on offer. Calvo says: “We maximize our distribution channels through segmentation on all lines of business and we are entering into a massive market by focusing on our direct marketing.” It is using cold-calling as the main form of direct marketing; in-house call centres for testing and outsource operations for acquisition campaigns.
Calvo sees his main challenge as being to “increase our participation in consumer lines by continuing to consolidate our position as one of the main players. During the past five years our market position in these lines of business has increased from 12th to third in accident & health and from 14th to fifth in home insurance. AIG in Argentina is currently setting the pace through innovation – not just in the type of products we are putting out there, but also in the way we are distributing them and the manner in which the service is being delivered to our clients”.
