SAO PAULO, December 21, 2010 /PRNewswire/ -- The following was released today by Bradesco Seguros

Strategy

Bradesco Seguros, the largest insurance group in Latin America with approximately 36 million policyholders and annual revenue around US$ 14 billion, hopes to add 20 million new clients, leveraged primarily on the strength of microinsurance, an insurance program tailored to the low-income population with coverage for specific risks and at amounts that are suitable for this segment. The estimate was made by the executive director of the Group, Eugenio Velasques. His forecast was based on a survey by the Getulio Vargas Foundation (FGV) that estimates the potential public for these products to be 100 million Brazilians who are currently outside the insurance market. The regulation of the microinsurance market is still under consideration by the Brazilian Congress and it is expected that legislation allowing these products to be offered will be approved early in 2011. According to the Bradesco executive, a project designed exclusively to meet both the terms of the regulations and that also is flexible will be critical for success in the Brazilian microinsurance market.

Grupo Bradesco Seguros, according to Velasques, first offered products with the concept and the philosophy of microinsurance, such as Primeira Protecao Bradesco (Bradesco First Protection), in January of this year in the Rocinha (Rio de Janeiro state) and Heliopolis (Sao Paulo state) slums ("favelas"). The company expects to close 2010 having underwritten more than 560,000 policies, with monthly premiums of R$ 3.50 that will pay an accidental death benefit of R$ 20,000 to the beneficiaries of the policyholder. Another example of product is Bradesco Bilhete Residencial - "Estou Seguro!" Project (Bradesco Home Insurance - "I'm Safe!" Project), that was launched in September 2010 in the Morro Dona Marta slum ("favela") (Rio de Janeiro state). With yearly premiums of R$ 9.90, it offers insurance for residential fire, explosion or lightning, with coverage up to R$ 10,000. Velasques also said Bradesco had decided not to wait for implementation of a regulatory framework for microinsurance to be formalized before testing the market. He noted that after more than 80 surveys in recent years and the Organization's existing track record of meeting the needs of low-income segments, the company already had the necessary elements to conduct a pilot test in this important segment.

Bradesco Seguros, which is the only insurance company to have at least one insured person in every city in Brazil, relies on the strength and the presence of Banco Bradesco and a network of insurance brokers in 5,564 municipalities in Brazil, offering access to a large portion of the Brazilian population that today has neither life insurance nor any other kind of insurance protection.

Bradesco Seguros will introduce new products in 2011

After the passage of the bill regulating this new insurance policy model, Grupo Bradesco Seguros expects to offer 8 new microinsurance product options with monthly premiums ranging from R$ 3 to R$ 15. The insurance programs basically combine two or three different kinds of coverage/protection: one for home and life insurance; another for personal accident with financial protection/unemployment; and a third for financial protection with funeral assistance.

The insurance company, in addition to new products, is developing a series of projects that include changes in operating processes, improvements in IT and the establishment of alternative distribution channels to reach these 20 million new clients.

Special Event Support

The experience that Grupo Bradesco Seguros has gained in the growing market in Brazil will be presented during the 7th World Microinsurance Conference in November 2011. This important and essential insurance industry event is being sponsored by the Munich Re Foundation with the support of the Microinsurance Network and CNSEG (National Confederation of General and Life Insurance, Supplementary Health and Pension Plans and Capitalization Companies).