The bank of the Ecuadorian Institute of Social Security (Biess) is preparing to hire a company that will provide a lien on mortgage loans for the next two years. For this reason, these days he convened a meeting with private insurers in order to socialize the process.

The Chairman of the Board of Directors of Biessa, who is also the Chairman of IESS, Alfredo Ortega, said that “this is the first time that the private sector meets the public, before a process that is undoubtedly a very big process. These are mortgage relief policies.” At the same time, he pointed out that it is an “important bill” and that is why he wants to carry out the process transparently.

Mortgage loans: interest can cost more than the house by choosing the longest term

Insurers are familiar with the conditions for contracting mortgage insurance. Biess indicated that this new process covers the contracting of current and future policies maintained by the institution, in the same way, the insurer’s service channels are sought to be in the cities with the highest demand, which are Quito, Guayaquil, Cuenca and others..

At the meeting, the general conditions, qualification of offers, forms of payment and methodology were presented. According to Biess, there was significant feedback from company representatives, in order to improve the processes and work together, since the selection of insurance companies will be based on the lowest offered rate, which must not exceed the one set in the policies in force on the day of the process execution.

Biess plans to provide $4,874 million in loans and $2,000 million to the public sector in 2023.

The tender conditions are:

64% of mortgages are financed with the longest term in Biess

Currently, the company that manages mortgage loan insurance is Hispana de Seguros. According to Patricij Salas, executive secretary of the Association of Insurance Companies, any event that contributes to transparency and greater participation of companies is welcome.

He commented that on the insurance market, specifically in the area of ​​mortgages, there are two lines of coverage: relief that covers the loan after the death of the contracting party and fire coverage that covers the real estate, i.e. the mortgage. He explained that this year, these two insurance companies recorded good growth, but this growth cannot be attributed only to Biess business, but to the entire sector.