The insurance sector is in a phase of particular turbulence also due to the consequences of the case Eurovita (read the related news here) which has been in the news for several months. Precisely for this reason, as we read above The sun 24 hours, the spotlight is now on redemptions and possible changes to the regulation of separate management. The sector, in this particularly turbulent phase, is playing on multiple tables in an attempt to stem the effects that the economic and financial context is having on the Life sector.
And which can be seen in the sudden increase in the number of customers who cash in on their policy. On the other hand, the surge in government bond yields has made government bonds more attractive which, moreover, are also generating strong capital losses on the insurance world’s investment portfolio. If we add the Eurovita case to this, it is understandable why separate management has become the new key hub for the sector. Hence the belief that Ivass will launch a new public consultation, after the one promoted about a year ago on unit linked, by the end of the year to try to change the cards on the table.
The starting point to better understand the scenario is Life policies that are cashed in before expiry. In the first half of 2023, according to Ania data, the total amount of expenditure reached 58.4 billion, with a sharply increasing annual variation: +45.2% compared to the first six months of 2022. Thus, it was ransoms and other refunds that accounted for 76% of payments. On paper, the data appears worrying. Even more so if we focus on the trend.
The percentage of surrenders on policies, as we read in the Confindustria newspaper, has always hovered around 5% per year, in 2022 this figure rose to 6.6% and in September of this year it had already reached 7.6%. The figure is even more rounded if you look at the bancassurance sector alone: here it reaches 9.7%, excluding the Post Office. There are still three months to go until the end of the year and this suggests that the balance sheet value will be even more rounded.
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2023-10-21 11:21:42
#Insurance #spotlight #separate #management #Eurovita
