(Financial district, Bogotá, Colombia. Photo credit: EEIM.)
Editor’s Note: Juan Camilo Bueno Delgadillo, VP, Commercial, La Previsora Seguros SA, is one of 16 finalists for Insurance Innovation Reporter’s Four Stars Award, which recognizes outstanding insurance IT innovators across four regions of Latin America: Mexico, Central America & Caribbean, Andean, and Southern Cone.
Among the accomplishments of Juan Camilo Bueno Delgadillo, VP, Commercial, La Previsora Seguros (Bogotá), is the company’s launch of the first auto insurance product in Colombia that does not require an in-person vehicle inspection, but enables motorists to submit a series of photos and videos that enable the insurer to verify the age of the vehicle and document its condition.
The product, Cariño Verdadero, addresses the difficulty of insuring cars over 10 years old. Those cars constitute a market of more than 4 million vehicles without access to conventional insurance policies. The product is named for a popular song, whose lyrics express the idea that something is well-beloved that is neither bought nor sold. This appeal to a popular sentiment has helped to drive significant customer response during the first six months of the product’s availability, with approximately 700 new policies in the 28 Colombian cities where La Previsora operates.
The product complies with all the standards required by the Colombian Financial Superintendent, as well as meeting the operational risk requirements of La Previsora.
Cariño Verdadero comes with a mobile app, which the policyholder can use to access guidance in using the product, report emergencies and request roadside assistance, and seek legal help. The product reaches thousands of Colombian homes that have vehicles of more than 10 years, providing them for the first time with extra-contractual civil liability coverage; that means not only do they now have protection for their own asset, but they no longer pose a threat to others’ property.
The technology underlying this innovative product includes a new rating capability not based on the commercial value of the vehicle as measured through inspection, but through an algorithm based on age alone, which is very effective for cars that are between 10 and 25 years old.