22 May 2018

Movernos Seguros: car insurance to improve road safety in Latin America

Movernos Seguros is a joint initiative between the Inter-American Development Bank (IDB) and the HLP that explores how car insurance could improve road safety. The initiative brings together stakeholders such as governments, FIA Members, insurance companies (both domestic and international), local NGOs (especially victims’ associations), and other international entities to exploit potential road safety improvements through relevant car insurance schemes.

The initiative is looking at how the implementation of third party liability insurance and a “bonus-malus system” (where drivers with no-claims enjoy reduced premiums) could not only provide health coverage and compensation to road crash victims, but also incentivise customers to improve their driving habits.

Taken together, these links could generate a virtuous circle, whereby better driving reduces road crashes and road traffic injuries, thus benefitting society as a whole, while improving insurer’s results and revenues at the same time. In addition to this, the data gathered by insurance companies can be extremely useful to design and implement efficient road safety policies.

This is being carried out in Latin America, where the car insurance market remains relatively underdeveloped. For example, in many countries car, insurance is still largely considered to protect against theft and damages of the vehicle, while the protection of traffic victims is not yet sufficiently developed. Likewise, third party liability insurance is not compulsory in all countries and its enforcement and regulation remains weak. This comes at a time when the car insurance market is growing relatively fast, with premiums amounting to almost 28 billion euro in 2013, largely as a result of the strong growth in Brazil, Mexico, Argentina and Venezuela.

A workshop was held in Washington DC on October 12th with the participation of FIA Region IV representatives, road safety authorities, insurance companies and insurance regulators. Next steps for the project include the elaboration of a study to detail the development of car insurance markets in the region, and three pilot projects – which have received resources from the IDB – are scheduled to take place. A final report will be presented at the FIA Mobility Conference in Montevideo on the 24th of July.


This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more

Close message