At the end of last year, these policies covered more than 22 million people, representing 46.6% of the population. This percentage, according to Unespa in its report ‘Burial insurance in 2020’, has remained stable in recent years. In fact, it has even grown slightly. In premiums, last year ended with a volume increase of almost 1.3%. But in March of this year, that advance was already 1.8% in the interannual rate.
Of course, its penetration is closely related to the type of families and, above all, to age. Thus, the study finds that this insurance is practically non-existent in households in which a single person lives who is less than 30 years old (with a penetration rate of 3.42%). And in those in which there are people over 65 years old are the most common: the maximum penetration rate, around 60%, occurs among people over 65.
But something is beginning to change. The level of penetration already exceeds 40% at 20 years. According to Unespa, this data responds to the impact of group policies, normally of a family nature. And, undoubtedly, the efforts of the industry to renew itself, to adapt to the new times and to make the product more attractive, dressing it with new services that give it a less sad and gloomy character are also influencing it.
In fact, for some time now, the reference to this type of insurance as personal multi-risk has been increasingly common in the sector, a name that distances it from the concept of death. You only have to take a look at the offer launched by the companies in the first half of the year to realize the new packaging of the product.
Commercial campaing
For example, among the latest announcements, NorteHispana introduced coverage in its funeral insurance to include hospitalization in case of surgical treatments, childhood illnesses or cancer. Helvetia Seguros and Plus Ultra Seguros incorporated into their policy a guarantee aimed at protecting clients’ pets.
I want to take care of myself more, the telemedicine platform of DKV Seguros, added to its offer of services the medical chat for the funeral branch. In the case of Preventiva, its new funeral insurance offers among its coverages that of genetic legacy that guarantees its insured the necessary means for the conservation of the genetic load.
In addition, all companies have placed great emphasis on adding elements of the new era of digitization to these policies, which has facilitated this growth in the penetration of funeral insurance among the younger population. According to ICEA data, fingerprint erasure coverage or the availability of an online will are some of the most common services currently offered by these products. Both are covered by 95.5% of funeral insurance. There are other coverages in this area with more scope, such as digital reminder (incorporated in 45.5% of the policies marketed) or digital protection for minors (40.9%).
In short, funeral insurance is renewed and rejuvenated. Nuclear coverage remains the same, but a large number of services and guarantees are structured around it that seek to cover the needs of the insured not only at the end of the day, but throughout their entire life. And it seems that the strategy works.
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