Only 6% of Venezuelans have insurance, according to the sector

A stark reality has emerged in Venezuela's insurance sector, with a recent revelation that a mere 6% of the population holds an active insurance policy. Yanior Ochoa, president of Asesores La Seguridad and Lo Legal Venezuela, highlighted this figure, underscoring the critical need for institutional efforts to foster a culture of prevention, especially in the wake of recent earthquakes that struck the nation.

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make a great institutional effort

Adding to the concern, Ochoa noted that many existing policyholders had clauses excluding damages from seismic events. However, the Superintendency of Insurance Activities (Sudeaseg) issued a circular just 24 hours after the tremors, mandating insurance companies to lift such exclusions and provide immediate coverage for hospitalization, surgery, and maternity (HCM) policies. Ochoa explained that while earthquakes are typically considered force majeure events, certain policy clauses for vehicles or HCM can include earthquake coverage, though not as part of a generic policy.

The situation is even more dire for property protection, with insurance coverage for buildings standing below 3%. This indicates a significant lack of contingency plans for homes and commercial facilities against natural catastrophes. "We are below 3% in terms of buildings. We do not have a preventive population that uses policies to insure their homes or businesses in Venezuela," Ochoa stated.

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A earthquake of such magnitude as the one that occurred in the country is classified as a fortuitous event and force majeure. When we talk about this, we refer to an exemption for insurance companies to cover a certain risk.

To reverse this trend, Ochoa advocated for a national strategy built on three pillars: restoring user confidence, strengthening relationships with healthcare and service providers, and ensuring maximum operational transparency from insurance companies. He also stressed the importance of restructuring communication and intermediation channels between brokerage firms and insurers to improve risk mitigation and response to large-scale events.

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In terms of buildings, we are at less than 3%. We do not have a preventive population that uses policies to insure their homes or businesses in Venezuela.