Vehicle insurance sector heats up again after pandemic, says CEO of Porto

Vehicle insurance sector heats up again after pandemic, says CEO of Porto

The car market was directly affected by the pandemic, with a drop in sales of new and semi-new vehicles. Insurance contracts also suffered a significant decline, as many customers no longer use their car due to the long period indoors.

Now, the sector is starting to recover, according to Porto’s CEO, Roberto Santos.

According to him, the significant rise in the market value of used cars caused by the lack of availability of new vehicles (zero kilometers) in the market, had a strong impact on the car insurance industry in the country. Santos says that this impact is already a little behind.

“The impact on the used car market value is already returning to an adequate level. Still high, but no longer going up. The industry acted responsibly by adapting prices, which ends up impacting the consumer, but it was necessary in relation to the increase in vehicles”, he explains.

In the opinion of Porto’s CEO, the company does not foresee for the coming months and year the continuity of the impact on prices due to the increase in used cars, since the market in this segment has stabilized.

car sales

According to data from the National Association of Automotive Vehicle Manufacturers (ANFAVEA), vehicle assemblers in Brazil produced 206,000 cars, light commercial vehicles, trucks and buses in October, down 0.8% over the volume assembled in September, while sales of new ones retreated 6.7%, to 180.9 thousand units.

Compared to October last year, production was 15.1% higher, while registrations increased by 11.4%.

When it comes to semi-new vehicles, sales accumulate a 3.3% increase in the first ten months of the year, according to data from the National Federation of Vehicle Distribution (Fenabrave).

In October of this year, 180,884 vehicles were registered, considering cars, light commercial vehicles (such as vans), trucks and buses. In the year, the total is 1,683,276 registrations.

In this cut, vehicle sales last month dropped by 6.74% compared to September of this year, but increased by 11.44% compared to October 2021.

When adding motorcycles and road implements, the automotive sector registers 2,957,600 vehicles in the accumulated result for the year, 316,919 of which in October alone.

insurance price

Data from the Auto Insurance Price Index (IPSA) pointed to stability in the value of car insurance in October. The survey carried out by TEx – a company that uses technology in the insurance sector – points out the monthly variation in auto insurance prices according to gender, region, age group and age of the vehicle.

In the first month of the year, when contracting the service for a car costing R$50,000, the rate was set at 5.7% of this amount and the customer paid R$2,850 for insurance. With the number stable in October, the index went to 6.5%, making the insured pay R$ 3,250 for the same asset to be protected. A difference of R$ 400 in the drivers’ pockets.

Source: CNN Brasil