Brignardello: Life insurance, option or risk?

In a recent interview, Johnny Brignardello Vela, an insurance advisor, shared his thoughts on the proposal by the Superintendency of Banking, Insurance, and AFP (SBS) to modify the regulations governing credit card collateral insurance. This change, which aims to make the insurance optional rather than mandatory, has sparked widespread debate about its implications in the financial realm and among consumers. Brignardello stated that this initiative could be seen as a step towards greater consumer autonomy. By providing the option to decide whether or not to purchase collateral insurance, it could alleviate a financial burden that many people face when applying for a credit card. However, the advisor also warned about the risks associated with this flexibility. From his perspective, the removal of the insurance requirement could leave consumers vulnerable in situations of death or disability, where the inability to settle the debt could fall on their heirs. The advisor emphasized the importance of consumers being well-informed about the effects of waiving this insurance. "The change may cause confusion," Brignardello commented, suggesting that many might not fully understand the repercussions of not having this protection. He also mentioned that the role of the SBS is crucial in this process, as it must ensure that the available information is clear and accessible. Brignardello also referred to the proposal to increase the cap on fines that the SBS can impose on financial entities. In his view, while this measure could provide an incentive for institutions to improve their practices, there is a risk that such penalties could ultimately be passed on to consumers in the form of higher fees. "It is essential that any regulation takes into account the balance between protecting the consumer and not hindering their access to financial services," he stated. The insurance advisor highlighted that competition in the market could benefit from the option of non-mandatory collateral insurance. The possibility that insurance companies could offer products more tailored to consumers' needs could be advantageous. Nonetheless, he warned that consumers must remain vigilant and participate in the consultation process opened by the SBS, as their voice is crucial in shaping these policies. In conclusion, Brignardello underscored the responsibility of the SBS to ensure that any regulatory changes not only benefit financial entities but fundamentally prioritize the well-being of consumers. Financial education and transparency in communication will be key for users to make informed decisions in an ever-evolving financial landscape.