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Daily Insurance Industry News
Wednesday 18th of July 2018
September 29, 2010

Swiss Re identifies European life insurance gap

by Gill Montia

Story link: Swiss Re identifies European life insurance gap

Swiss Re has published a new report which claims that hundreds of thousands of people across Continental Europe do not have enough life insurance.

According to the study, which questioned over 11,000 consumers, respondents had a clear need for life insurance but many were unaware of how it can help deal with the financial impact of death, illness or disability.

Perceived cost was also a barrier to buying cover, despite the fact that life insurance products are, in practice, within the price people are prepared to pay.

The survey also revealed that consumers are generally at ease using existing distribution channels but that insurers need to engage better with consumers and build trust in the industry.

In Swiss Re’s view, there is a “sizeable untapped potential for life insurance to protect people’s financial needs effectively and affordably”.

The emphasise the point, the firm has calculated a pan-European “Mortality Protection Gap” which amounts to sums assured of more than €10,000 billion across the countries featured in the report.

The gap compares the amount of money available to dependents in the event of an untimely death against how much consumers actually need to ensure their dependants’ financial needs are met.

In potential premium terms for life insurers, the amount translates into a staggering €25 billion per year.

Swiss Re suggests if a single company could penetrate this potential by just 1%, it could boost its annual life insurance premiums by €250 million.

 

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