“We pay 473 million pesos (mdp) every day for life insurance and, every month, we pay 2,121 million pesos in pensions,” said the Mexican Association of Insurance Institutions (AMIS) in the report. Life insurance in Mexico. main trendspublished in March of this year.
What is retirement insurance?
It is an instrument that offers an income that allows the person hiring, upon retirement, to have resources to have a dignified life, complementary to the social security scheme (pension).
In 2020, life expectancy has increased over the last three decades; for men it was 72 years, while for women it was 85. In 1990, this indicator in men was 68 years and in women 74, according to data from the Inegi.
With this type of instrument – whose objective is for the worker to generate savings during his working life – the insurer absorbs the risk of longevity and investment of resources to guarantee a pension, AMIS explained in the report.
Life insurance
In the event of death and disability, a family takes up to three years to recover their standard of living, says the AMIS report. Hence the importance of having this type of insurance.
In 2021, covid-19 was the leading cause of death, surpassing death from circulatory problems, which was in first place from 2011 to 2020.
Breast tumors rank first in terms of the number of deaths (432), followed by those of the respiratory system -bronchi, lungs and trachea- (255); then there were those located in the liver and bile ducts (219), stomach (211), prostate (164), neck and body of the uterus (148) and leukemia (141).
From 2018 to 2021, the main cause of disability was related to problems with the musculoskeletal system and joint tissue.
microinsurance
Life microinsurance has a simple design that is easy for people to understand and has well-defined benefits. Thanks to the use of technology, it reduces costs.
In addition, it uses non-traditional distribution channels with low transaction costs:
- banking networks
- Microfinance networks
- commercial networks
- Public services
- New distribution networks based on non-traditional intermediaries
The payment of claims is immediate and with minimum requirements through the following channels:
- Deducted from credit payment
- Deducted from savings bank accounts
- Deducted from payment receipts for other services
- Collected through non-traditional intermediaries
From 2016 to last year, the number of people who had life microinsurance reached 16.5 million people.