Madam Director:
On July 25, a parliamentary motion was submitted to the Chamber of Deputies that seeks to “delimit the amount to be paid for automobile insurance premiums”, based on the fact that greater crime and accidents have increased claims, raising the price of insurance. .
At InsurteChile we value the attention of the legislator in this matter, however, we believe that this proposal is deeply mistaken and would rather have the opposite effect. We believe that the correct path is the creation of value through technology that prevents the risks of accidents and robberies, allows good public road safety policies, as well as investment in infrastructure and effective penalties for criminals.
We are concerned that the proposed mechanism is price fixing, since, although insurers could be forced to limit the price, they could never be forced to offer a product that is to their own economic detriment, so this The bill, if applied, can limit the offer, make it of poor quality and, in the extreme, make it disappear.
The way to improve insurance inclusion will never be price restrictions, but the creation of value through technology, which is put at the service of people, preventing risks, creating industry and social welfare.
Diego Fernandez Leon
Chairman of the Board InsurteChile AG