The bancassurance channel accounts for more than a third of premiums in Spain, being one of the most important in the sector. Their specialty is in the life branch, of which they are present in seven out of ten policies. Given these dimensions, Amaef was born in 2000 to represent the interests of banking entities in this market, where Álvaro Urrutia arrived a year and a half ago to reinforce this position.
How has the trend in the bancassurance channel evolved in recent years?
At the end of the nineties this channel began to be relevant, but it was very focused on investment management and not so much risk. Hence, of the 22,000 million that we manage, 19,000 million are in the life sector, a market where we have been growing gradually. Now the situation is quite stable between channels, although our intention is to be the best at what we do, but not the only ones. When we enter we do not take market share from others, but rather we expand it. We believe that this is still possible, since the growth potential of the sector is around 50%.
There is data that reports that products through its channel are up to 65% more expensive.
It is not true that our products are more expensive. These reports do not take into account the bonuses that apply to insurance when it comes to combined products. When this combination is made, at home rates are reached at 0.15% and at life rates at 0.5% with the mortgage, which almost “gives” you the product. Furthermore, neither the insurance nor the channel is a commodity.
Is the non-life branch a pending subject? Why don’t they penetrate there as well as in life?
In this field there are other actors who are very strong, and with a historical relationship with clients. We also want to be the best, but the sector is very stable.
There is a deficit in the dissemination of life products in Spain compared to Europe. What is it due to?
The main factor is that Spaniards allocate savings to housing, which causes wealth to remain immobilized. Political decisions that have deteriorated the tax benefit of retirement products also influence. And finally, the lack of financial education and excessive trust in the pension system.
You are the maximum distributors. Do they sing the mea culpa? What are they doing to solve it?
I believe that we must evolve towards simpler and more understandable products that allow us to satisfy real needs. We also demand that the administration commit to the private sector to complement the public, with aid at the regulatory and fiscal level. But right now there is no conversation.
Proposals such as simplified employment plans are not getting off the ground.
We are supporters of this type of initiatives and we believe that new groups will be incorporated, but what should be reinforced is the third pillar, individual plans.
Aren’t they late for that pillar?
They will probably fall short, but it would be worse not to act. Furthermore, these instruments make it possible to make economic policy, channel the country’s wealth and direct it towards industrial and economic policies that interest. If the investment remains in the brick only, we do not generate anything. Promoting this individual market would undermine the real estate market, since it would not be the only investment avenue. We would kill two birds with one stone.
So far, life insurance falls 12%. With the environment of falling rates, what should the sector do to remedy it?
Lower rates always give fewer margins, but we can be competitive if we focus more on coverage and not so much on profitability. Permanent and temporary disabilities, life annuities… there is the demand and the room for growth.
The life branch is one of those with the most concentration. Isn’t that something to check?
It is not so much the number of competitors, but the quality of that competition. There could be many, but the forces were very unbalanced.
With BBVA’s takeover of Sabadell, the scenario opens up for the birth of a banking giant, but also in insurance. Could it be an aggravation for the consumer?
There are many uncertainties in this operation. Even if it goes ahead, the insurance conditions may be different due to the agreements already established. But there would be no competition problem, because I think that in life the offers are very fragmented.
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