Jorge Daniel Guzmán, CEO & General Director, Grupo KC • Interview

Grupo KC has more than 1,100 insurance agents and 50 offices that provide attention to its portfolio of more than 300,000 insurance clients.

What strategies are you using to overcome Mexico’s low insurance penetration rate?

Mexico has 2.2% insurance penetration. This is a percentage that has been the same for many decades. When I started my career in insurance the percentage was only 1.8%. The insurance sector has not grown much in the last 15 years. The government should be investing in education and financial inclusion to change this reality. Everyone has a cell phone now, which means it is now easier than ever to access people. Currently, our penetration rate in the states where we are present is a consequence of our salesforce reaching the most isolated communities.

What are the companies’ main strategic objectives when it comes to growth in the insurance sector?

We have three strategic objectives. The first is to diversify, which we are doing in terms of products, branches, and other forms of collections. The second is to protect and consolidate our business. Today, we have more than 300,000 clients in individual life insurance and a portfolio of MXN2.4 billion. We want keep customers closer through technology, physical presence, and so on. What we have seen and learned in these years is that clients stay because of the relationship they formed with us. They also stay for the product and good service, though a long-term relationship comes from considerate treatment of clients. The third objective is to grow the business. Grupo KC is beginning to diversify out of the field of insurance. On the financial side, we are taking advantage of our economy of scale through other businesses such as multi-purpose financial corporations (SOFOM). We are also implementing loans for payroll discounts to people who sometimes need them. We are competing not only in terms of the service but also with decent rates. Part of the population needs more support, and we help provide that support.

How is the portfolio balanced between public and private?

Around 2010, the portfolio was all payroll discounts. Today, our portfolio is 70% public and 30% private. We have grown at rates of around 14% annually. We have not actually diminished the business line of the government, but we have grown a lot in the private sector. We are looking to establish a more balanced portfolio. Before, it was easier to implement a payroll discount agreement with the government; now those agreements are closing, and they do not allow you to use the government’s payroll to sell products. We have to acquire clients through debit cards that are used to receive payrolls.

How did you win the Latin American Quality award for best Mexican company?

We are a socially responsible company, and all our activities are aligned with the UN’s SDG objectives. The recognition, in part, has to do with our business approach. This organization evaluates at international level, by sectors, which is where and how they evaluate us. We have several certifications, such as IPSO 9000, including from Microsoft. Both at the Mexican insurance level and at the international insurance level, we have been recognized as one of the fifty best agencies in the world for sales, quality, and customer conservation. We also received several awards in 2019, including one from Business Global, who recently talked to us about another European award for quality.

How many offices do you plan to add by the end of 2020?

We now have 50 offices in five states: Mexico City, Nuevo León, Guerrero, Oaxaca, and the State of Mexico. These offices are strategically located so that our clients do not have to go far distances. We have 17 offices spread across the seven regions to serve the most remote clients. The next step is to open offices in Puebla, Guanajuato, and Querétaro. In fact, the Bajío region will be the main goal for 2020, because of our success in Monterrey has allowed us to start covering the region. We are strong in the southern part with Guerrero and Oaxaca, so I want to focus on the center and then go south. ✖