Los Legal Defense insurance will continue to grow in the coming yearsseven above general insurance since «this market is still small and is not yet mature», as indicated by ARAG. The Commercial Director of ARAG, Juan Carlos Muñoz, adds that “legislative changes have been frequent and that uncertainty is good for the growth of the industry. This has helped the mediation to market our products as there is greater customer awareness.” Despite this, he clarifies that the future will be determined by greater agility of legal processesthe increase in legal costs and the frequency of accidents.
Legal Defense insurance has a degree of penetration in Spain below that of other European countries, which makes the increases constant and greater than in other branches. “The number of insured increases every year, both in direct insurance and through generalist companies, which increasingly receive requests from clients to incorporate legal guarantees in their policies,” says Muñoz, who points out that “in the year 2023 “It will end up with a growth figure close to double digits.”
With the advice of mediation
Juan Carlos Muñoz also analyzes ARAG’s competition and believes that Generalist companies “leave little room for specialized products”. He also points out another major competitor: direct sales companies that do not work with mediators and, therefore, do not allow them to offer added value to their insurance offering. «Our product needs the advice of a professional “who knows how to offer differentiated value propositions to clients,” he points out.
This professional advice comes hand in hand with mediation. ARAG’s objective is to adapt products to new consumer needs. These opportunities come mainly through mediation, which knows the clientele perfectly.
2023-12-04 17:58:05
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