Gabriel Bussola: There are several positive points. In macroeconomic terms, Argentina is going down a very different path than what we have been seeing. Today, issues that were not even considered before are being raised on the table, and that represents a change not only economically, but also culturally and morally. It is important to understand that change does not just come from the top down. Society is also beginning to look at things differently. That is very valuable because we all, as citizens, have a fundamental role in building a different Argentina. In the insurance industry, for example, we have proven to rise to the occasion in critical moments. During the pandemic and other difficult contexts, the industry responded with commitment and professionalism. Although we are suffering the impact of factors such as the increase in crime and fraud, we continue to move forward. This speaks of a solid and resilient industry.
GB: Economic change always brings challenges for our industry. For example, in times of economic crisis there is an increase in crimes, which directly affects insurance companies. Fraud increases, financial returns decline, and operating costs rise. Despite this, our sector has proven to be strong. We have been able to face difficult situations and maintained the trust of the insured. Additionally, as a citizen and businessman, I have promoted a bill that seeks to toughen penalties for fraud against the insurance system. I believe that these types of initiatives not only protect the companies, but also the bona fide policyholders.
Q: What led you to promote this bill and what is its current status in Congress?
GB: The project arises from the need to update the Penal Code, which in some aspects is still stuck in 1903. Today, the penalties for fraud are light, and this does not generate a true deterrent effect. For example, we have faced cases in which justice was with us, but the resolutions allowed the accused to avoid jail with probation. That’s not enough. My proposal seeks to increase the minimum penalties for fraud against the insurance system. This means that those who commit this type of crime face real consequences, such as prison. It is not just a matter of protecting the companies, but of safeguarding all policyholders who trust the system. Furthermore, this change has a cultural impact. If we can get the new generations to see that fraud is not “stupidity”, but serious crimes, we can begin to transform society. I am excited to see that this bill is already moving through Congress and could become law soon.
Q: What are the most common frauds facing the insurance industry today?
GB: In general, the most common fraud is related to automobiles. Some examples are the theft of tires, the simulation of partial damage, or even the disassembly and reassembly of vehicles to defraud insurers. There are also frauds in other segments, such as the transportation of goods, combined family insurance or comprehensive commercial insurance. For example, in the latter case, thefts or damages that did not occur are declared, and this generates a negative impact on the entire system. What is often not understood is that each fraud directly affects bona fide policyholders. When someone commits fraud, insurers must redistribute that cost, and that makes policies more expensive for everyone.
Q.: How does Libra Seguros face these types of challenges, taking into account the economic complexity that it had, especially at the start of the year?
GB: The beginning of 2024 was especially complicated, marked by very high inflation and restrictions that made it very difficult to import parts necessary for repairs, something that directly impacts our activity. Many companies saw their budgets overwhelmed due to rising costs. For example, automobile parts reached such high prices that in some cases it was cheaper to compensate for total damage than to repair a vehicle. At Libra we opt for a strategy of austerity. We lowered brand visibility, reviewed our costs and focused on sustainable businesses. We reduced expenses in areas such as advertising and prioritized quality over quantity in our business. We decided to leave aside some less profitable segments and focus on consolidating our base. Today we see that these measures allowed us to remain solid. It is not just about growing in volume, but about doing so with solidity and a long-term vision. We are convinced that the path we choose positions us well to face the future. Today, at the close of the year, we see the fruits of that strategy. The industry continues to face challenges, but companies that have made responsible decisions are better prepared for the future.
Q: How many employees and consulting producers does Libra have?
GB: Today we have a team of almost 200 direct employees and more than 2,000 producers throughout the country. These producers, in turn, have their own teams, which means that our impact in terms of employment is very significant.
Q.: How does Libra Seguros’ 2024 balance close?
GB: In 2024 we managed to close our best balance sheet to date, with positive numbers and a surplus in minimum capital, something essential to operate as a comprehensive company. This was possible thanks to the commitment of our shareholders, who have invested heavily in strengthening the company.
Q: How do you evaluate the management of the National Insurance Superintendency and the focus it has placed on controls in the sector?
GB: I believe that controls are essential, as long as they are applied equally to everyone. We cannot allow certain actions to benefit some and harm others. The positive thing about the current management is that a fluid dialogue has been established with the companies. I do not see the Superintendency as an adversary, but as an ally to strengthen the industry. Of course, it is important that the rules are clear and fair for all actors.
Q: What are insurance customers looking for today, and how does Libra adapt to those demands?
GB: Customers are much more aware and demanding. They look for products that are tailored to their specific needs. For example, in the past, most people bought generic insurance and didn’t look too closely into the details. Now users get more involved, ask, compare and seek to understand what they are really hiring for. At Libra we are focusing on that personalization. We want to offer products that are practical and effective, but also accessible and clear. For example, we have adjusted our strategies in automotive to be more selective and we have strengthened our proposal in other risks, such as commercial and family integral. The challenge is to strike a balance between customization, efficiency and reasonable costs. We are making good progress in that direction.
Q: Where do you think the insurance market in Argentina will go: will there be more concentration or atomization in the future? Do you expect the arrival of foreign companies in the sector?
GB: I think we are going towards a more concentrated market. Companies that are not willing to invest and adapt will be left out. Competition will become increasingly stronger, and that is a positive thing because it drives all actors to improve. I also see the possibility of more foreign companies entering the market. If the Argentine economy stabilizes and conditions are favorable, many international insurers will want to participate. That would raise the standards of quality and professionalism in the sector. From Libra we are prepared for that scenario. We want to be one of the leading companies, not only in volume, but also in innovation, quality of service and solvency.
Q.: Thinking about 2025, what is Libra’s vision for what’s next and what challenges do you expect to face?
GB: We want to consolidate ourselves as a comprehensive company, which offers more than automobile insurance. We are advancing in areas such as surety, health and transportation. A segment that interests us a lot is rental security. This is an important issue because many people face difficulties meeting traditional rental requirements. We want to offer accessible and effective solutions that really solve our clients’ problems. Our goal is to offer customized products that best respond to customers’ changing needs. At Libra we have an innovation center that constantly works to develop new alternatives. Additionally, we work on strategic alliances, especially with reinsurers, to manage risks more efficiently. We want to be one of the leading insurers in Argentina and contribute to the development of a more solid and professional industry. Our goal for 2025 is ambitious: we want to consolidate ourselves as one of the most important insurers in the country. To achieve this, we will continue investing in innovation, quality and expansion into new segments.
Journalist: In your role as a businessman, what is the greatest motivation you have today, beyond the profitability of your company? What are your dreams and ambitions for the future?
GB: My greatest motivation is to leave a positive mark on society. I firmly believe in the role of entrepreneurs as agents of change, not only for their companies, but for the country in general. That is why I am working as a link between the private and public sectors. I have no political ambitions, nor am I seeking a candidacy, but I believe it is essential that we actively participate to build a better Argentina. As a society, we cannot continue to complain from the sidelines. It is time to get involved and take an active role, each one from their place. I believe that change begins when we all commit to building the country we want. On the other hand, I am also at a stage in my life where I highly value balance. For years, I was focused almost exclusively on work, but today I understand that success is not only professional or economic. I am enjoying things that I am passionate about again, like sports and time with my family.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
