Against the backdrop of the crisis and increase in the cost of insurance associated with it, the number of offers of policies with a franchise and limited set of risks is growing. Thus, RESO-Garantia is planning to replenish the line of VHI with products with a franchise in the near future.
The demand for franchised products with a limited set of risks increases during crises, as the purchasing power of customers decreases. However, it should be borne in mind that with a drop in the scope of cover, part of the insured events will not be covered by the policy, and in the case of a franchise, the client will have to pay extra when claiming the insurance.
Over the past two months, for example, prices in the VHI market have risen by 10-12%, and further price increases are expected in line with inflation. In case of buying such insurance with a franchise, the cost can be reduced by 15-30%, the experts explain. Demand on such products is usually up to 40% of the total number of policies purchased, but in the current environment it might grow by another 10-15%.
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