The pandemic did not stop savings in insurance companies in 2020, which grew 0.6%. This is how insurers managed 242,388 million of euros from its customers at the end of 2020. Of that amount, 194,110 million correspond to insurance products. That is, a 0.35% less than 12 months ago. The rest 48,278 million constitute the assets of the pension plans whose management has been entrusted to insurers, with an increase in the 4,57%.
In terms of income, insurers added life insurance premiums of 21,804 million in 2020, with a sharp drop in premiums of 20.7%, but standing as the branch that contributes higher income to insurance, very far from the second branch in turnover that is the automobile with 11,312 million last year.
The most profitable branch
But it is not only in collection where life insurance stands out, it is also the insurance industry that more benefits brings to the sector. Specifically, in 2020, insurers achieved an operating technical result of 2,125 million, although with a decline of 11.4% Over the previous year. This figure represents a third of the total operating results achieved in the sector, and it is also very far from the benefit that other insurance lines provide.
The conclusion is that, despite the notable impact of low interest rates in this market, insurance life is still big business for insurers, both in billing, savings and benefits.
Turn to Unit Linked
Despite continuing to be the main insurance line, the life segment is living an important strategic turn, as a result of low interest rates, moving from the classic guaranteed products to others in which the policyholder assumes the risk
Thus, the insurance Unit-Linked, those in which the policyholder assumes the investment risk, are those that register a more positive behavior in year-on-year terms during 2020. Assets under management increase by 12,50%, up to 16,016 million. They are followed by individual long-term savings insurance (SIALP). These policies moved 4,397 million at the end of December and grew by 1,70% from one exercise to another. Meanwhile, individual systematic savings plans (PIAS) remain stable when the data at the end of the fourth quarter are compared with those of a year ago.
While others business lines have reduced savings under management in 2020. The decreases have occurred in the transformation of assets into annuities (-6.83%), in deferred capital (-2.61%), in PPAs (-1.95%), as well as in life and temporary annuities (-1.00%).
