In the second quarter of this year, the share of banks in sales of insurance products made up 31.6% of all collected insurance companies fees. This is a record figure. For example, in 2012 banks have brought insurance companies, 20.4% of all insurance premiums, a research of the Russian Union of insurers (VSS) “Insurance market in 2016: what lies behind the growth.”
At the same time the share of sales of insurance policies through agents decreased from 44.2% in 2012 to 39.8% in the second quarter of this year. Also fell sales of insurances through a brokerage and Agency company (from 18.3% in 2012 to 15.1% in 2016) and car dealerships (from 9.3 to 6.7%).
From the study of VSS should be in the second quarter of the insurance market increased by 14% compared to the same period of 2015. Drivers of growth was the life insurance. Premiums on this type insurance grew by 58,1%, to 47.4 billion rubles, compared with the same period last year. And in 2015, the fees for this type of insurance amounted to 129,7 billion rubles or 13% of the total fees of insurance companies (of 1.02 trillion)
“The last two years, the growth of the so-called investment life insurance (coli) sold through banks,” says the managing Director of the National rating Agency (NRA) Pavel Samiev. It’s a policy of life insurance, which enables you to invest the funds in various financial assets. It could be bonds or stocks of various companies.
Insured event in this insurance is the endowment before the end of validity of the insurance contract or death for any reason. If at the expiration of the insurance period (three years) the insurance event has occurred, the client receives only the amount of so-called guaranteed income.
“Banks over the past year became increasingly difficult to offer life insurance instead of deposits. We saw a sharp rise in fees. This is an alternative to deposits”, — explains the Deputy General Director OSAO “RESO-the Guarantee” Igor Ivanov.
According to the Central Bank, rates on deposits of the ten largest banks from January to October this year decreased from 10 to 8.7% per annum. Since the beginning of 2015, when the rate was higher than 15.3%, and the decrease was even more significant. Against the background of falling interest rates on deposits with insurers in 2015-2016 the increase in the premiums for life insurance, says Samiev.
The role of banks as insurance intermediaries started to rise before 2008 due to loans linked to insurance, reminds Samiev. When issuing mortgage loans to insure the life and health of borrowers and so, according to samieva, continued until 2014, while banks began to actively offer investment life insurance, increasing the level of their fee income.
“Statistics show that the model of Bank assurance (selling of insurance policies at Bank branches) works. We expect that it will evolve and that this trend will have a long-term trend”, — says the President VSS Igor Yurgens.
Managing Director for insurance ratings Agency RAEX (Expert RA) Alexey Yanin considers that the insurance market largely becomes dependent on the banking sales channel and the development of the situation in the banking sector. However, he notes that banks also receive a substantial Commission from the insurance companies, therefore, also depend on the insurers.
According to the Bank, in the first half of 2016, a Commission of the banks in the sale of life insurance policies amounted to 19.6%, and in the implementation of the car insurance — 26%.
“For insurance companies, the development of sales channel through banks, especially the largest, profitable by reducing the cost of maintaining a branch network, the selection of the personnel”, — explains the first Deputy General Director “VTB Insurance” Oleg Merkulov.
The insurers do not agree that they were depending on the banking sales channel. According to Ivanov from “RESO-Guarantees”, the share of banks in sales of products is growing, as earlier this sales channel was underdeveloped. “This does not mean that the channel Agency sales stopped and will stagnate. Prospects for the development of Agency sales in our country is underestimated. Only the agent will be able to reach all customers and to persuade them,” he said. Janine explains the fall in the share of agents in collecting what they are selling mainly automotive insurance, and car sales are falling.
According to experts, the role of banks as insurance intermediaries will continue to grow in the coming years. “We’re just getting into the model, which is already long established in southern Europe — Spain, France, Italy. In these countries, the Bank assurance is more than half of all sales,” — said Samiev. And, according to Janina, the share of sales of insurance policies through banks will increase to 35-40% and stabiliziruemost at this level.