Autor: David Esteva

As a starting point for this article, it is important to remember, perhaps once again, what an insured is, whose definition explains that it refers to the name by which the natural or legal person or persons who are holders of contracts or insurance policies. Thanks to this protection, policyholders enjoy peace of mind and are unconcerned about possible fatalities that may be incurred against their integrity or property, in exchange for a fee or premium that will be paid to an insurance company.

In the case of life insurance, it will be a third person designated by the insured, who will be responsible for receiving the indemnification or compensation.

Knowing more about the insured

1.The insured is the person who normally carries the risk that the policy deals with and who is in charge of fulfilling the obligations related to the contracting of the insurance in particular.

Similarly, there are times when the person who takes out the insurance (also known as the policyholder) may be a person other than the insured. An example of this is the case of a mother who takes out auto insurance for her child, where the former will be the policyholder and the latter will be the insured as he may be at risk in the event of an accident or damage to the automobile.

2. There are cases in which it is strictly necessary for the insured to be a natural person, as in those insurances that cover personal risks, such as accident or life insurance. The rest of the modalities, related to contracts of patrimony or responsibility, it is possible that the insured has the legal formula of legal entity.

3. The insured assumes the obligation and responsibility to periodically pay the installments or premiums that the insurance company requires in exchange for the protection granted by the insurance policy. It is important to note that prior to contracting the insurance, the insurance company will perform a risk calculation, to establish based on this, the amount to pay and if it is feasible to grant the insurance.

4. The insured person must meet a series of requirements, among which we find:

• Notify the insurer if a claim occurs.
• State what are the damages suffered.
• Make known other types of circumstances related to the fact.

It is important to remind you of the importance of being backed by an insurance company, since it will not only watch over our assets but also our integrity, health and life. Life is unpredictable, and what better way to rest easy than to have insurance for ourselves and our family?

What is the cost of insurance? Cheaper than the cost of not having it.

At LISA we do not stop innovating, we equip traditional insurers with technology in order to guarantee them automated, safe and efficient processes.

When thinking about insurance, various concepts come to mind that we have heard at some point, but perhaps we are not very clear about its definition, that is why through this small article we want to clarify two super concepts important that you should know.

What is a contractor?

It is the person who contracts the insurance and is in charge of paying the premiums for it. It should be noted that if you take out insurance for yourself, you will be contracting and insured at the same time, but it should be noted that the contracting party and the insured are not always the same person.

For example, if Juan took out insurance for Mario, the latter would be the insured.

On the other hand, we have the insured, which is the person on whom the insurance coverage falls, where «what is insurable» is the integrity or life of that person.

We must mention to remember that the insurance is only effective once the insured suffers the loss and that in the event that the contractor and the insured are not the same person, there must be a real bond of the contractor to avoid risks on the person who was insured (it can be spouses, children, etc).

It is important that at the time of contracting insurance, you know the basic concepts and the necessary information so that you can better orient yourself and know what you are looking for and what is best for you and the care of your family.

The Peruvian Association of Insurance Companies (Apeseg), announced that insurance companies in Peru will disburse around USD 55,000,000 to relatives of Covid-19 victims between the months of January and August of this year.

Apeseg also assured that in the coming months it is expected that as new reports of deaths with some life coverage appear, the amount to be paid will be higher.

The president of Apeseg, Eduardo Morón, assured that of the 36,000 claims reported for deaths in life insurance (considering burial, relief, individual life, group life, life law and risky work), more than 10,500 correspond to Covid-19.

He also pointed out that almost half of the deceased in the world belongs to the group of older adults over 75 years of age and that the types of insurance that have been taken care of are related to this profile of affected people.

It should be noted that the claims reported to insurance companies by Covid-19 mainly correspond to credit life insurance, where an insurer assumes the pending payment of a debt due to debt or credit card.

The second type of insurance with the highest number of reports is burial, with around 2,500 cases and then individual life insurance, where insurers must assume about USD 6,374,722 in compensation.

Learn more about the benefits of insurance automation.

The insurance sector is closely linked to economic performance, in other words, this allows development to be positively influenced by strong global growth and moderate inflation.

Thanks to the digitization that derived from the digital transformation and technology, the insurance industry has diversified with the contemplation of new products, however, health policies remain at the top as they are the ones that have occupied the most ground so far.

According to data from the Chilean Association of Insurers (AACH), in 2018 alone, the market grew by close to 3%, with a penetration of 4.6% in the national GDP. The health branch increased to 7.4% in premiums in the third quarter of that year with 9,112,935 people insured.

Jorge Claude, vice president of the AACH, affirms that the factors that explain the previous behavior are due to the high health costs, together with the fact that the provisional systems cannot cover the expenses associated with accidents or critical illnesses.

Growing

As far as general insurance is concerned, they have been in charge of moving the market. Thanks to a report issued by the AACH, the projection between 2018-2019 was known, which denoted an increase of 1.6%.

The most prominent insurances are:

• Social responsability.
• Mandatory personal accident insurance (SOAP).
• Robberies.
• Vehicles.
• Transport Guarantee and credit.
• Earthquake.

These insurances had a growth in 2018 of 22.8%, obtaining UF. 3,286,457 direct premium.

As we explained well at the beginning of the article, the economy affects the insurance sector, which is why the current abrupt stoppage of it will have direct and indirect repercussions on insurers.

Insurers will finally have to transform and adapt to continue their development and growth and take advantage of this global «test» to get out of their comfort zone, towards new and better horizons.

There is no doubt that technology and digitization have been a primary and important ingredient in the growth of any company, however banks have been slow to mobilize their bancassurance products on the digital path and it could be partly the fault of the complex insurance product sales processes and competition with other banking products.

The Insurance Banking Today

Those in Asia-Pacific and Latin America have focused on a large scale in the bancassurance channel to sell life insurance products, which choose to have higher average sales prices and profit margins than most non-life products.

When banks have access to their clients’ personal financial assets, they often work to promote embedded cash value life policies as an investment alternative, citing tax benefits.

Also, many banks have gone to great lengths to market non-life insurance products, which have lower selling prices and commissions.

Global sales of bancassurance grew in all regions from 2011 to 2017, which were led by Latin America, whose premiums expanded 12%. In Asia-Pacific sales increased 9.2%, where China accounted for two-thirds of the growth.

The slowdown of digital insurance banking

A survey of 118 banks around the world found that digital bancassurance channels accounted for 19% of non-life insurance sales, while 2% of life sales, where advisers and branches next being dominant (85% of sales in 2017).

This difference exists because in rare exceptions, banks do not offer products digitally and have been slow to digitize because complex insurance sales processes can make the shift to purely digital channels more challenging.

Some banks may also not view life insurance as a priority investment solution due to increased regulatory contracts and dissolution of tax benefits in some markets.

Each bank continues its path in search of the creation of a multichannel model that adapts as the best option, dominating the field and standing out digitally.

It is common to see banks continually evolve their digital strategies and offering. In this process, however, banks often treat bancassurance products in a tactical rather than a strategic way. As a result, banks tend to embed these products into other offerings rather than making them a low-key part of their digital channel strategy.

Unfortunately, fewer customers visit the banks’ physical locations and they have been slow to make up for lost sales at branches by implementing a comprehensive digital model for bancassurance.

There is no doubt about the great growth opportunities for bancassurance, however, one of the keys to capturing them is in the digital and analytical capabilities that give way to personalization: a better customer experience and an omnichannel offering.