Brazilian insurers will likely increase the cost of policies
next year to counter a decline in borrowing costs that drove
down financial income and profit margins, Thomaz de Menezes,
chief executive officer of SulAmérica Seguros e Previdencia SA
, said on Wednesday. Under de Menezes, SulAmérica,
Brazil's third-largest insurer, has stuck to discipline as a way
to weather an adverse market scenario for insurers plagued with
rising frequency ratios - a measure of the frequency of use of
services covered by insurers - and claims.
He said at an event in São Paulo that reductions in prices
for auto and healthcare insurance policies by some of
SulAmérica's rivals are "not sustainable."