Argentine P&C insurer SMG Seguros plans to enter the workers compensation or ART insurance business in next year's first half, commercial manager Alberto Bugna told BNamericas.
"It will make a lot of synergies with the group's business and we think we'll have good market positioning".
SMG Seguros is a unit of Swiss Medical Group, which also operates in the life and health insurance business.
Bugna said entering the ART business makes perfect sense for Swiss Medical since it combines the group's expertise in the healthcare business and its strong distribution channels composed of its broad brokers network in the P&C segment.
But the ART industry has suffered from legal insecurity for years as today's legislation has seen workers getting compensation from their ARTs and then suing their employers in court for more.
"We will start a company from scratch so we will not see any impact on our portfolio from lawsuits or claims. We will enter the business with prices in accordance to the new market regulation," Bugna said.
Last month, ART association general manager Mara Bettiol told BNamericas the business should see a reform proposal agreed on by industrial association UIA, the general labor confederation CGT and the government before the end of the year.
With some 4.5bn pesos (US$1.33bn) in annual premiums, the ART business represents 30% of the local P&C market, covering 7mn workers and 700,000 companies.
SMG Seguros focuses on car and medical malpractice insurance. The insurer expects to end 2008 with 185mn pesos in premiums, above its original 160mn-peso target for the year.
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