Cheap insurance for seniors, will it be possible?

The good news is that the government and insurance companies operating in Mexico are working on more affordable health insurance for older adults.

They are seeking a formula to strike the right balance between protection for seniors and profitability for the insurance industry.

The instruction to achieve this goal was issued by the Secretary of Finance and Public Credit, Edgar Amador.

And it was well received by the insurance sector, which, since the day before yesterday, has been headed by Pedro Pacheco and managed by Norma Alicia Rosas.

The agreement was announced at the 34th Insurers' Convention.

The intention is to design a basic insurance plan that older adults can afford, a population group that currently faces high policy prices as the policyholder ages, Rosas explained at a press conference.

The head of the Insurance, Pensions, and Social Security Unit of the Ministry of Finance and Public Credit (SHCP), Héctor Santana Suárez, was very clear in stating that insurance for seniors requires a review of the terms and conditions.

The major medical insurance sector has been the subject of recent public discussion due to rising premiums, he commented.

However, he also emphasized that the SHCP is aware that medical expense products are based on a technical and financial foundation that makes the payment of claims through its mutual fund viable and that, in recent years, the sector has faced high costs.

However, he considered that the technical rationality of the risk premium should be maintained while also ensuring the protection they (the insured) deserve and for which they have paid for many years.

It is urgent to find, he specified, a balance between protection for the elderly and profitability for the insurance industry.

The goal of finding a formula that allows seniors to maintain their major medical expense premiums is essential.

A growing phenomenon has been observed, in which those who turn 65 or older and have already retired are unable to continue paying their insurance policies because as they age, their prices increase dramatically.

In the end, many end up defaulting on their policies and losing their protection, leaving them with the bitter taste of having paid huge sums of money throughout their productive lives, only to be forced to abandon them at the end of their careers due to a lack of sufficient income.

In this sense, the proposal from the head of public finances is very appropriate, as it would benefit a large and growing segment of the national population: senior citizens.

Additionally, Santana Suárez also suggested that insurers offer more affordable premiums on better-designed products to meet the insurance needs of Mexican women and men.

He said new microinsurance products are needed, tailored to specific needs that are currently unmet and that must also be affordable for more Mexicans.

In this regard, the official acknowledged that progress has been made with projects like Minerva. The Minerva Project, it should be noted, provides financial tools for women.

As for microinsurance, it's also worth noting that insurers have made significant progress.

In the eight years since it began offering, the number of insured people has exceeded 16 million.

AMIS also presented its list of demands to the government.

He presented a five-pillar plan that seeks to promote financial protection for the population with a social and inclusive approach.

1. Access to quality healthcare, with the participation of private insurance companies in health financing and as a complement to public health services.

2.- Protection for victims of road accidents. Extend mandatory protection insurance to victims of road accidents by including it in state and federal legal frameworks.

3.- Disaster resilience. Promote a Comprehensive Risk Management Study in all states.

4.- Financial protection for retirement. Expand the scope and types of life annuities.

5.- Inclusive insurance. Complement the scope of social programs through the use of microinsurance or parametric insurance.

This is how the intention to collaborate to square the circle in the case of major medical expense insurance for adults over 65 years of age was recorded.

And demands from both sides also began to emerge. Those from Claudia Sheinbaum's administration are new and are obviously based on her intention to benefit those with the least.

And Amis's proposals, for the most part, are reiterations of requests that have been heard but ignored by previous governments. We'll see if, now, in the spirit of dialogue, they move forward. Time will tell.