With Innovative Pricing, SulAmerica Introduces a New Concept in Truck Insurance

By Prne, Gaea News Network
Wednesday, October 21, 2009


- Mileage-Only Truck Insurance allows Policyholders to pay Monthly Premiums Based on Regions, Periods and Mileage

Always quick off the mark, the SulAmerica insurance company launches its innovative Caminhao Km Rodado scheme that allows its policyholders to pay only for the distances travelled by their trucks. With a pioneering pricing model that is the first of its kind in Brazil, this product is designed to expand the share held by this insurer of a somewhat neglected branch of the insurance market.

According to the National Transit Department (DENATRAN), there are some two million cargo vehicles in Brazil. However, only 15% of them are insured. “This product was created in order to attract truckers who do not normally take out insurance on their vehicles. Many of them work with seasonal deliveries, and a product of this type responds to the needs of this public,” explains Property & Casualty Vice President Carlos Alberto Trindade Filho.

The Mileage-Only truck insurance policy works like this: the policyholder uses the vehicle during the month and pays a premium based on mileages, times of day and regions where the vehicle is driven, which is settled only at the end of this period. If the vehicle is driven less during the subsequent month, the amount payable will be lower, respecting only the established minimum fee. Although the contract is annual, the premium is charged on a monthly basis against a statement providing information on precisely when, where and how much the truck has been driven.

This product was initially developed for cargo vehicles and tow trucks. Using satellites to monitor the routes of these vehicles on a 24/7 basis through state-of-the-art technology, this insurance was tested through a pilot project that uncovered great business opportunities in this segment, with rising interest among the public. “We are trying to match the real needs of the customer to the best that we have to offer. In the future, we hope to be able to use the same technology for other products,” adds Trindade.

This unique pricing system offers another advantage: depending on the planned routes, policyholders can simulate the value of the insurance premiums in advance, including this cost when calculating freight charges and ensuring easier payment of the policy by the insured. “Consequently, deliveries can be made, billing the customers and receiving payment, and only then are the premiums settled, without altering cash flows,” explains SulAmerica Automobile Director Anderson Mello.

This Mileage-Only truck insurance provides coverage against damages caused by collisions and crashes, fire, theft or robbery (comprehensive coverage), optional third-party liability, moral damages (pain and suffering), window repairs and replacements and full round-the-clock assistance. Additionally, for new vehicles, this product also offers the new replacement value for twelve months. Policyholders may also opt for additional guarantees providing protection for the bodywork and equipment, in addition to coverage for damages during loading and offloading operations by tipper trucks. “Through this Caminhao Km Rodado policy, SulAmerica guarantees that its customers’ vehicles are protected anywhere within the distance driven. Through this product, we are introducing an innovative pricing methodology to this market, and we look forward to impressive results,” notes Trindade Filho.

About SulAmerica

With a track record stretching back 113 years, the SulAmerica Seguros e Previdencia company is one of the largest business conglomerates in Brazil, specializing in the insurance, pension and investment segments. Its nationwide operations have been underpinned by its growth, posting net profits of R$ 84.1 million for the second quarter of 2009. With more than 6.3 million customers, SulAmerica is divided into four business units: Health, Property & Casualty, Life & Personal Accidents and Private Pensions & Asset Management.

Source: SulAmerica

Solange Guimaraes or Daniela Campos, +55-11-3779-7614, +55-11-3779-5045, imprensa at sulamerica.com.br, or Sara Dalsin, +55-11-3779-7615, sara.dalsin at sulamerica.com.br, all of SulAmerica

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