Brazilian ‘micro-insurer’ planning to open subsidiary in Cuba

Brazilian 'micro-insurer' planning to open subsidiary in Cuba



CUBA STANDARD — Saying it will be the first private insurance company to

offer its services to Cubans, Brazilian insurer Capemisa announced plans

to invest $10 million in an expansion to the Cuban market, a Brazilian

trade publication reported.



Authorization by the Cuban government is pending, and the company

expects to be open for business before the end of the year, Capemisa

President José Augusto da Costa Tatagiba told Apólice magazine.



Capemisa, which has grown fast offering "microinsurance" in Brazil,

plans to offer life insurance, liability and property insurance to

low-income Cubans, as well as warranties and reinsurance to Brazilian

companies in Cuba. Capemisa's stronghold market is low-income areas of

Rio de Janeiro.



Economic reforms have expanded home, automobile and business ownership

among Cubans. However, access to hard currency still is limited. Two

state insurance companies are covering the market.



"Cuba is a country of 12 million, the same size of the city of São

Paulo," Tatagiba said, according to Apólice. "The returns are low, but

we have experience with popular products, and that is what we are going

to offer Cubans: Insurance that fits the wallet of these people."



The $10 million investment will provide enough capacity for Capemisa

Seguradora de Cuba to "guarantee future policies and for the setup of

the operational structure in the country," Tatagiba said. The Cuban

subsidiary will employ six to eight Brazilian executives, in addition to

an unspecified number of Cuban employees.



This is the company's first international foray; Brazilian regulators

authorized Capemisa to operate abroad in February.



Already, Capemisa began offering travel insurance to Brazilians and

other foreigners traveling to Cuba. As part of that service, the company

has formed agreements with clinics and hospitals in Cuba.



Tatagiba plans to use Cuba as a springboard to other Caribbean and

Central American markets, he told Revista Cobertura earlier this year.



Source: "Brazilian 'micro-insurer' planning to open subsidiary in Cuba «

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