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In September 2015, Fundacion Mapfre published its report on the Spanish insurance market for the previous year. The report includes several relevant figures, including average insurance spending in Spain of close to 1,200 euros per person per year.
According to the report, investment in insurance increased by just over 3% in 2014.
Who offers better insurance prices: banks or insurance brokers?
According to the conclusions of reports by INESE and Global Actuarial, in the case of term life insurance, as we discussed in this article, taking out the policy through a bank is more expensive, although the difference had narrowed over the previous year.
The report includes a detailed analysis of how insurance activity has evolved from both an international and national perspective.
It also reflects on the socioeconomic factors that affect the Spanish market. It studies each insurance line, such as motor, liability and multi-risk insurance, and reviews the latest regulatory developments.
In insurance mediation, price is not everything
In the competition between banks and professional insurance intermediaries, such as agents and brokers, premiums are not the only factor. The quality of day-to-day service also matters, especially when claims are handled. In that area, brokerages usually have a strong advantage over banks because they have deeper knowledge of policy wording and claims management.
Insurance brokerages also add value when comparing options and advising clients on which policy best fits their needs. In many cases, as well as having more technical knowledge of the policies, they can offer the insured a wider range of insurance companies.
Finally, it is worth making one distinction. The issue is often presented as a battle between banks and insurers. Insurance companies are not fighting financial institutions, because banks are one of the distribution channels that has grown most in recent years.
What really exists is competition between different distribution channels: agents, brokers, brokerages, bancassurance and direct sales by insurers, whether online or by phone. So the real debate is between some of the different insurance mediation channels.[/vc_column_text][/vc_column][/vc_row]