"We are long-term investors and we want to expand our SME support"

The times of economic volatility have put the insurance business on the test. After the 2001 crisis, faced with a scenario in which most companies in the sector weighed their coverage, the Zurich-based company, of Swiss origin, kept its promise to make payments in dollars . Fabio Rossi, his current CEO, remembers this moment as it coincided with his entry into the company after a long career in the banking sector.

"We are long-term investors," says Rossi, facing a new panorama of turbulence. change that did not prevent the purchase, at the beginning of the year, of two local travel assistance companies (Universal Assistance and Travel Ace), and the acquisition of the activities of the Australian insurer QBE in Latin America, which starts today (19659002) In dialogue with El Cronista, Rossi commented on some details of this operation and developed the changes and prospects of the activity of Insurance

How is the insurance market doing right now? Does contractual insurance fall when there is an economic recession?

Yes, because people have to cut costs. But at the same time, there is a paradox because in times of crisis, it is when we should more secure the capital we have. Insurance has a social role that is to maintain the standard of living and stability, especially in countries like ours.

Why in Argentina are sold more car insurance than people, when in other countries Is this the opposite?

It happens that we still consider insurance as an expense, whereas in reality it is an investment that protects our assets. In the country, there is a strong penetration of compulsory insurance such as motor vehicle liability, but it is low relative to GDP in relation to non-compulsory insurance. It turns out therefore that the most important investment that a person makes in his life, such as housing, is not insured in many cases.

There have been changes in the insurance business after the repeal of Article K which regulates the investments of insurance companies?

We have not been affected by this regulation because we have always invested in the so-called "real economy". In any case, there are always regulations, both in the products we market, in the distribution model, the amount of capital and the investments we make. And that's good because the insurance industry is essentially a highly regulated industry.

What drove them to grow by buying from other companies, like Universal Assistance and QBE? [19659002] The decision to invest in Argentina was taken from the projection of business in the future, beyond the conjuncture. In the case of Universal and Travel Ace, we had the intention to complement our offer in the Latin American market with travel assistance services, already offered in other countries. , and the opportunity is presented to sell them. It's a growing market, because the world is becoming more globalized and interconnected and there are more and more people traveling, whether for pleasure or for business. In the case of QBE, it is a complementary company because its strength is insurance for companies, especially in the segment of SMEs, in which we want to grow.

How Does Technology Affect Business Activity? Of course, will it become an online business?

Technology already has a lot of impact. The relationship with the customer changes because it involves more segmentation. Today, the data allow to offer different insurances according to the needs and the habits of each person, with differentiated prices, and this is being customization. The technology also helps speed up paperwork and avoid the use of paper. Recently, we signed, all the insurance industry, a commitment to digitize policies and invest what was saved on paper in afforestation plans for the Forestar 2030 program. Paperless insurance is a trend that has been installed for a long time. ] Will these changes affect employment?

Even if there will be a process automation and that many simple online insurance will be purchased, the role of the insurance advisor will continue, it will not be replaced by software. When the client has to plan how to protect his capital according to the stage of his life or his business, it is good to meet a professional advisor

How do you view the economic situation at the end of the year? [19659002] Argentina has to solve several deficits while being impacted by international trends such as dollar appreciation and rising rates. That's why the turbulence will likely continue, although I hope they will do it at a slower pace.