In recent years, insurers have been making a major effort to market all types of insurance lines, but life risk insurance is one of the areas where they are placing particular emphasis.
It is true that insurers are increasingly using more commercial distribution channels, such as exclusive agents, brokers and brokerages, direct sales through call centres and even online policy sales. However, in life insurance they are strongly committed to the major agreements they maintain with banks, the bancassurance channel.
Is It Advantageous for a Client to Take Out a Life Policy with a Bank?
Our opinion has always been that it is not. In addition, an article published by Cinco Días supports our view. The article was titled “Insurers or banks: where can I take out cheaper life insurance?” and can be read at the following link:
http://cincodias.com/cincodias/2015/05/27/finanzas_personales/1432743153_505090.html
We have always believed that any type of insurance should be arranged through specialised and professional mediators in order to receive proper advice, and that is not the case with a bank. When a query, policy change or, above all, a claim arises, the service provided by a brokerage or agent is not the same as that offered by a bank, which will usually refer you to a call centre.
On the one hand, the service is fully personal and, on the other, a mediator will defend the insured party’s rights as far as possible.
In addition to the above, if we compare different offers whenever we buy a product or hire a service, should we not do the same when taking out life insurance?
If so, in most cases life policies would not be taken out through banks. The study carried out by INESE and Global Actuarial using a mystery shopping technique shows that, when comparing premiums for life risk insurance with an insurer and through a bank, arranging it directly with an insurer comes out better.
For example, it is consistently better to arrange it with Mapfre than with any of the three banks offering the best prices across the different age profiles. The following image shows the results.
If you would like us to advise you on life insurance that best suits your needs, we are at your disposal.