Premiums paid to life insurance companies have grown
Life insurance companies garnered 16% more insurance premiums in the first half of 2014 than during the same period a year ago.
A total of 41 million euros in insurance premiums was collected, the greatest amount from life insurance contracts with investment risk. The volume of insurance premiums with investment risk was 18 million euros, which made up 44% of the total premiums received by life insurance companies. This was followed by capital insurance and annuities – both amounted to 8 million euros in premiums.
In terms of the number of active contracts, the category of life insurance that is most in demand is accidental death insurance, which make up close to a quarter (26%) of all policies. Five years ago, at the end of the first half of 2009, the most popular type of insurance according to number of policies was capital insurance (26%). Death insurance is selected with the goal of ensuring the beneficiary has money to live on and compensation in the event of the death of the policyholder. Capital insurance policies combine saving money toward retirement, a child’s university or other purposes with accidental death protection. Life insurance with investment risk is different from traditional insurance and is essentially similar to an investment service.
The value of life insurance contracts with investment risk depends on the return on the underlying financial instruments and the investment risk is borne by the policyholder. But even life insurance policies with investment risk guarantee the beneficiary a payout in the event of accidental death.
Among life insurance companies, the greatest amount in premiums was garnered in the first half of the year by Swedbank Life Insurance, which holds a 37% market share – 15 million euros. It was followed by SEB Elu- ja Pensionikindlustus with a 23% market share – it brought in 9 million euros in premiums. The greatest increase in insurance payments was seen by Mandatum Life Insurance Baltic, a life insurance company with a 15% market share. During the year, the sum of the premiums collected by Mandatum grew 62%, and the main part of the growth came from life insurance with investment risk.