Every insurer knows that the success of its business is charging the right premiums for its services. The premium is the cost of insurance and consists of several parts: the most important is the value by which claims are paid, using known methods, up to actuarial calculations for life insurance. The second part of the premium is the payment of administrative costs: salaries, work materials, computers and other things that keep the business running, including commissions for salespeople and insurance consultants.

The business can be profitable. Insurers pay taxes. They must invest a part of their reserves as required by the General Law on Insurance Companies, and a large part in government bonds. In the past, some have gone bankrupt. With the exception of a few cases of fraud, companies have failed because, in their desire to compete, they have reduced premiums to unsustainable prices. These mistakes are not forgiven. The market can be cruel.

This is the maximum salary an IESS retiree will receive in Ecuador

IESS is the mandatory insurer of Ecuadorian workers. They are their owners, not the state. Among its benefits is health insurance; and for this reason IESS has several hospitals. Many people complain that there are not enough medicines and that they wait too long for treatment and healing. The problem is that all governments used it as a kind of petty cash. But President Correa’s decision to extend health services to members’ children and partners was foolish. It extended free services without generating much-needed revenue. There is not enough money to pay for medical benefits and so it is a disservice to their owners and their families. It is about the extreme carelessness of the ruler, which for civil purposes is equivalent to fraud, according to the Civil Code.

The retirement age of 60 is added to that. Since the beginning of this century, the life expectancy of Ecuadorians has been over seventy years. Growth that is flattering from the human side, but from the perspective of those who pay out a lifetime pension, means the payment of beneficiaries for many years.

Advantages of IESS member families

I’m not a public safety expert. I know certain insurance principles from my work interests. Social security was discussed already in Bismarck’s time by a socialist named Ferdinand Lassalle, in the 1960s. Various formulas based on the principle of solidarity have been devised. The problem has always been how the fees are financed. And, unfortunately, in the current state of IESS, there are solutions that include eliminating or reducing services or increasing personal and employer contributions. The logical alternative remains for the state to increase contributions to the IESS, because it forces it to take care of thousands of relatives or partners of employees for free. The people always pay.

These are all heroic solutions. We will see what the commission under the chairmanship of the honest Dr. Augusto de la Torre will propose.

A message for the prosecutor, Dr. Diana Salazar: I am writing to express my admiration for your courageous work. Those who persecute her are defending false interests. Don’t pass out. (OR)