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We wanted to highlight an article published on 8 May by cincodias.elpais.com, which discussed the abuse of banks in the sale of life insurance.
The article included, among other points, the view of Martin Navaz, president of Adecose, the Spanish Association of Insurance Brokers.
We have already discussed in other articles how banks sell life insurance. In the article we are referring to, Cinco Dias provided objective information comparing the prices charged by banks and insurers for the same type of insurance and the same sums insured.
The result was shown in the following image:
Price comparison obtained from cincodias.com
The conclusions of this study are clear. Life insurance, together with funeral insurance, is a line with high profitability margins. A large part of this margin exists because 70% of term life insurance distribution is handled through the bancassurance channel, which uses its position to impose this type of policy and, in many cases, at prices that are outside the market.
As the chart shows, the price of the same insurance policy can vary surprisingly depending on whether it is arranged through a bank or taken out with an insurer through an insurance broker or agent.[/vc_column_text][/vc_column][/vc_row]