By the end of 2020, the growth of endowment insurance is expected in Russia. Life insurance programs will become available online in the nearest future, said Olga Monakhova, Executive Director of the Sberbank Investment and Savings Division.
Insurers call the decrease in deposit rates one of the main reasons for endowment plan growth. However, there is no question of transferring funds from the usual deposits to insurance products, since a client who buys endowment, already has a deposit.
Ivan Chubar, Director for Strategic Analysis of Rosgosstrakh Life, explained that during the pandemic, his company increased the share of long-term products, including those with regular contributions, and endowment was on the list. He noted that the purpose of such products is to create protective savings. However, there is no visible growth in demand for foreign exchange programs compared to 2014.
People choosing universal life insurance are interested in both the ability to form savings and insure themselves and loved ones, said Eugeny Gurevich, CEO of Capital Life Insurance. According to him, insurers provide additional options and services such as telemedicine, legal services, concierge services, checkups, psychological assistance and others in endowment plans. Besides, universal life insurance is less dependent on changes in deposit rates. They are more influenced by the growth of financial literacy of the population and understanding of the need to form savings and insurance coverage, the expert believes.
Photos are from open sources.