In the face of the COVID-19 emergency in El Salvador, local ICMIF member Seguros Futuro is working to help member policyholders who may be experiencing financial difficulties. The organisation is doing this through economic measures which benefit the insured population by ensuring they keep their cover. This means that there is a loss of premium income for Seguros Futuro for a limited period of time but the cooperative insurer says the measures are part of its social responsibility efforts to help members. The aim is to:
- Achieve the loyalty of policyholders through financial solutions in a time of need
- Maintenance of cover for policyholders during the term of these emergency measures, even if the premiums have not been paid
- Mitigate the risks of the Insurer’s financial impact whilst continuing to serve the population of El Salvador
One measure by Seguros Futuros is trying to help member policyholders whose policies are due to expire during the months of April, May and June by offering them a 25% discount on their insurance premiums for the coming year and not taking payments for those months if people are unable to pay due to financial difficulties but do wish to continue their cover.
Seguros Futuro hopes that this gesture of goodwill will ensure policyholders’ loyalty and therefore mitigate the risks of a severe financial impact for the insurance company and allow the organisation to continue to serve the population with cooperative insurance products. Daysi Rosales, General Manager, Seguros Futuro told ICMIF that, so far, the measure is working well.
Another relief strategy to help member policyholders of Seguros Futuro includes a raffle for USD 25 supermarket vouchers for people who take out or renew an insurance policy over the course of three months from May to July to encourage people to purchase a new policy or keep their existing policy going. There will be a total of 75 vouchers given out to winners in each of three locations in El Salvador over the course of three months from May to July which equates to 225 vouchers in total.
The first draw was held on 4 May 2020, and was transmitted via Facebook Live, in the three areas of the country. The winning policyholders who collected their supermarket vouchers in person said they were satisfied with the help they were being given by Seguros Futuro. The next draw will take place on 1 June.
For policyholders with payments pending and who were given a 25% rebate for the months of April, May and June, at the time of payment, some have paid their premiums in advance and those whose renewals were due in March caught up with their payments. The success of this operation can be explained by the diversity of means of making payments to the insurer throughout the country.
For policyholders renewing or purchasing their car insurance, Seguros Futuro is giving a rebate on premiums from 24 April to 24 June 2020 due to the fact that people are not driving their cars as much as they normally would. This gesture has been much appreciated by policyholders.
Seguros Futuro has taken measures in accordance with local regulations and special measures put in place by the country’s authorities to maintain full coverage for policyholders for a period of 60 days.
The measures were approved by the Board of Directors of Seguros Futuro and the organisation reports that they have been greatly appreciated by policyholders who have expressed their gratitude to the advisors, cashiers, and employees of the insurance company in general.
Seguros Futuro is making great progress in developing applications that will help policyholders, as well as easing the underwriting, policy renewal, and premium collection processes.