The Paraguayan insurance market is recording annual growth of over 10% in the number of insured vehicles, but this progress has been accompanied by rising policy costs, driven by an increase in auto parts theft. The sector remains competitive in terms of consumer pricing, although insurers have been forced to adopt technical measures that make coverage more expensive.
According to Diego Duarte, claims manager and member of the Paraguayan Association of Insurance Companies (APCS), the country currently has approximately 600,000 insured vehicles. A comprehensive (all-risk) policy has a minimum cost of G. 3,300,000 with 12-month coverage, while third-party liability policies, which do not cover damage to the insured vehicle itself, run around G. 120,000 per month.
Theft or stealing of accessories is now a coverage offered by virtually all companies to maintain competitiveness. To contain the frequency of claims, insurers limit coverage to a percentage of the insured sum, restrict the number of claims per year, and apply deductibles. However, there are no specific policies or additional clauses aimed exclusively at these smaller but recurring thefts; the most common practice is to include them under general motor risk coverage.
Geographic location is no longer the main factor in price variation for insurance, since the highest concentration of thefts is in Asunción and the Central Department. What weighs most heavily on cost is the type of insured vehicle and the value of its accessories. Vehicles imported directly through Chile are the most affected: according to APCS, they account for 80% of recorded cases.
To prevent theft, insurers recommend that owners secure their auto parts more firmly or park their vehicles in controlled parking lots. Duarte stated that the companies and the association attempted to implement a risk data centralization project to combat theft and the illegal sale of parts, but the initiative did not move forward. "The difficulty lies in control, especially due to the numerous vehicle thefts along the borders with Brazil and Argentina, which facilitates the illegal trade in auto parts," he said.
The black market for parts has taken hold on social media networks, where logos, mirrors, and other components are offered for sale. Illegal sales widen the margin of negotiation for companies regarding prices and spare parts inventory, often making it more profitable to import parts from abroad, such as from the United States, Germany, and Brazil.
For the sector, the frequency of accessory theft has increased in recent years, particularly in vehicles imported through Chile, while total vehicle theft has shown a gradual decline over the past five years. The lack of reports regarding the sale of stolen parts at unlicensed establishments "completely" affects the insurers' ability to tackle the problem. Although companies require rigorous documentation from their suppliers, in accordance with the standards of the Secretariat for the Prevention of Money or Asset Laundering (Seprelad), there remains a "deficit on the part of the State in controlling the origin of goods."