The entity revealed that families are forced to make purchasing decisions within a very short period of time and at a time of emotional vulnerability. Given this, he delivered recommendations that seek to benefit consumers with more convenient prices.
The National Economic Prosecutor’s Office (FNE) published on Tuesday the final report of its market study on the funeral market in the country. Along these lines, the entity proposes nine recommendations to increase competition in the funeral home and cemetery business. In this way, it seeks to benefit consumers with more convenient prices.
Along with the publication of the report, the Prosecutor’s Office sent the recommendations to the Executive, aiming to improve the competitive dynamics in these markets.
As stated by the FNE in its Official site, the proposals formulated respond to four objectives: to increase the contribution between funeral homes and the freedom of choice of funeral services by consumers; remove certain regulatory barriers to the use of consumer death benefits; facilitate the entry of new cemeteries and crematoriums; and oversee the adhesion contracts entered into between cemeteries and their clients.
If these recommendations are applied, the FNE estimates, conservatively, that savings might be generated for people of around 39 billion pesos annually.
Monica Salamancanational economic prosecutor(s), maintained that “this study demonstrates, with concrete and objective data, that there is a lot of room to increase competition and transparency in the funeral market. The measures that we are proposing go in this direction and can generate an important benefit for consumers”.
The Prosecutor also stressed that promoting measures that increase competition in this sector would not be complex and would be very beneficial.
FNE recommends modifying the General Regulation of Cemeteries
“The vast majority of the FNE recommendations can be materialized by modifying the General Regulations for Cemeteries by the Ministry of Healthso they should be easy and quick to implement”, explained the economic persecutor.
For the FNE, the importance of promoting these changes is related to the particular characteristics of this market, since a death forces families to make an unavoidable expense, making purchase decisions within a very limited period and at a time of emotional vulnerability. In addition, hiring funeral services and burial or cremation commits a relevant percentage of the monthly budget.
According to the information collected by the FNEfrom a sample of funeral homes and cemeteries, the average expense for a complete funeral with burial would be $2.345.745; and of $2.146.425 if it were a cremation
During the preparation of the study, the The Prosecutor’s Office compiled quantitative information on the sales and operation of both funeral homes and cemeteries and crematoriums. In addition, he met with industry participants and experts in legal medicine and industrial design, regarding the manufacture of urns.
Thus, the FNE recommends:
–Promote a higher price of funeral homes by consumers.
–Allow the purchase of funeral goods and services separately, without these only being able to be purchased bundled through plans.
–Modify the regulation of mortuary benefits and their knowledge by consumers (death allowance and mortuary fee).
–Regulate basic aspects of the anticipated sale of funeral services.
–Technically regulate the characteristics of the coffins, to allow the entry of new actors.
–Improve planning for the installation and expansion of cemeteries and crematoriums.
–Improve the requirements and the evaluation process of the cemeteries and crematorium projects by the administrative authorities.
–Clarify the legal nature of the right that purchasers have regarding graves.
–Oversee and regulate aspects of contracts between consumers and cemeteries.
FNE publishes final study report on the funeral market and sends recommendations to the Executive Power to increase competition in the activity of funeral homes and cemeteries. https://t.co/b1JepBifv5 pic.twitter.com/ObggvlK59c
— FNE_Chile (@ChileFne) January 31, 2023
