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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http://www.cubastandard.com/2013/07/13/brazilian-micro-insurer-planning-to-open-subsidiary-in-cuba/