Treasury sees potential in microinsurance for low-income people and SMEs

He explained that there is great potential, because according to the National Survey of Financial Inclusion 2021only the twenty-one% of the mexicans have access to private insurancewith women and the population of the southeast of the country accessing it to a lesser extent, since only 0.8% of the insurers’ portfolio is allocated to microinsurance to serve the most vulnerable population in our country.

Among the reasons are the lack of resourcesthe high coststhe lack of knowledge about how insurance works and as they can hire.

“Private insurance also plays a relevant role in sustainability, since in the face of calamities, such as premature death, the disability of the main family breadwinner or the loss of employment, families may see their income reduced, or lose the ability to generate it. . These blows affect lower-income families more severely,” said the official.

He explained that from a public policy perspective, the private insurance can be considered a tool effective for cushion the Social inequality and for this reason it is that private insurance must play a complementary role in the State social security plans.

uncertainty continues

Meanwhile, the Secretary of the Treasury, Rogelio Ramirez de la O considered that there is still uncertainty for him geopolitical planealong with the problems some have faced banks in the United Statesand isolated cases in Europe.

However, during the first months of the year there have been positive signs for the world economy, due to the solidity of the demand supported by good employment results, the reopening of China, the normalization of the supply chains and the decline in the prices of energetic.

“At the beginning of May, with the bankruptcy of another regional bank in the United States, uncertainty grew around the vulnerabilities faced by some elements of the regional banking system. This could generate more episodes of risk aversion and a tightening of credit access conditions that would add to the current state of monetary policy, which is already restrictive,” said the official.

He explained that in Mexico these shocks have been overcome with great stability, thanks to the solidity of fiscal and macroeconomic balances, the strength of domestic demand and the lower economic dependence on the United States.

“A reflection of this is the role of consumption and investment as engines of recovery in the last recession of the covid-19, which contrasts with the dynamics observed in the recessions of 1994 and 2009, where net exports were driven largely due to greater external demand and the depreciation of the exchange rate. In the latter, it is domestic demand and investment that is playing the mostly countercyclical role compensating for the fall,” concluded Ramírez de la O.