Background on the Mexican Insurance Sector and Relevance of Héctor Santana
The Mexican Secretariat of Finance and Public Credit (Hacienda) has called for the insurance sector to promote micro-insurance and offer more affordable premiums, amidst a context where business relocation is a significant government strategy. Meanwhile, insurance coverage in Mexico has seen little progress over recent years.
Héctor Santana’s Role and Recent Developments
During the 34th Insurance Convention organized by the Mexican Association of Insurance Institutions (AMIS), Héctor Santana, head of the Insurance Unit at Hacienda, emphasized the need for insurance products aligned with the population’s needs.
Héctor Santana, head of the Insurance Unit at Mexico’s Hacienda, calls for innovative micro-insurance products to address vulnerable segments and climate change risks. #InsuranceInnovation
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Santana highlighted the need for new micro-insurance products targeting unmet specific needs and affordable for Mexican citizens. He also mentioned the importance of addressing risks related to climate change, integrating new technologies, and optimizing profitability and costs.
Micro-Insurance: Definition, Importance, and Current State in Mexico
Micro-insurance products are tailored to cover specific needs, making them more accessible than traditional insurance. According to the Mexican Insurance and Surety Institutions Law, these products aim to promote low-income population access to insurance protection through cost-effective distribution and operational methods.
The National Financial Inclusion Survey (ENIF) reported that 23 out of every 100 Mexicans had some form of insurance in the past year, slightly higher than 21% in 2021.
Current Challenges and Santana’s Call to Action
Despite progress, such as projects like Minerva and other inclusive efforts, Hacienda’s representative acknowledged that the existing gap remains substantial. Santana urges the insurance sector to develop new micro-insurance products addressing unmet needs and making them affordable for Mexican citizens.
Key Questions and Answers
- What are micro-insurance products? Micro-insurance products are tailored insurance offerings designed to cover specific needs, making them more accessible and affordable for low-income populations.
- Why is Hacienda pushing for micro-insurance development? Hacienda aims to address vulnerable segments’ needs and climate change risks while promoting affordability and accessibility in the Mexican insurance market.
- What is the current state of insurance coverage in Mexico? According to ENIF, 23 out of every 100 Mexicans have some form of insurance, which, although an improvement from the previous year, still leaves a significant portion of the population uninsured.
- What challenges does the insurance sector face in Mexico? Despite progress, there is still a substantial gap in insurance coverage, and the industry must develop new products to address unmet needs and climate change risks.
