In the first quarter of 2020 the total volume of premiums in life insurance increased again, although during the whole of 2019 there was a decline in contributions, said in a thematic review of the Central Bank. The growth rate of contributions for January-March made up 15.9 per cent year-on-year, while the market volume amounted to 98.8 billion. Contributions life insurance excluding life insurance of borrowers grew even faster at 19%.
the Number of concluded life insurance contracts, excluding life insurance increased by 3.5%, the average insurance premium rose to 269 thousand rubles. In investment life insurance (coli), it reached 543 thousand rubles, noted in the TSB. Thus, the products of the coli focused on more affluent customers, and products at CNM is designed for the mass segment.
In General, the NCW policies allow policyholders to accumulate the necessary amount to a specific event in life (e.g. age of children, retirement) and, as a rule, are of a more long-term (over five years) than a coli. But, buying the policies of the NUJ, customers should understand that this product like the coli is not a direct analogue of the Bank Deposit – it has a system of insurance similar to ASV, with early termination of the agreement, the redemption amount may be less than the paid premiums, etc., prevent the Central Bank.
customers Have different motivations when opening the Deposit and the design of the NCW, stressed the Director of insurance ratings companies Agency NKR Evgeny Sharapov. A significant share of deposits opened for a period of about a year, and then the customer decides about its extension or change of investment models. “A distinctive feature of the CNM is a long-term nature of the contract. Classic NUJ life insurance should be 15-20-30 years. During this period the effective interest rates on the market can take more than one cycle from rising to falling and Vice versa,” notes the analyst.
the NUJ is usually characterized by high costs of the initial period, so the short-term deposits the average will always be more attractive yield than the NUJ, said Sharapov. But if you increase the period of insurance impact advantages of NCW: a guaranteed rate of return that allows you to ride out periods of low interest rates, and guaranteed from the revision of the size of the coverage in case of death, even if the customer during the term of the contract has significantly deteriorated condition.
the NUJ in the first place is a long – term program ahead of time to pick up the money, but it is very unprofitable for the insurer, says the expert of the National center for financial literacy Igor Grigoryants. Usually in case of early termination of the agreement, NUJ, the insurer will pay the policyholder the redemption amount in the range of formed insurance R��zerva on the date of termination of the contract, but the return of the paid insurance premium will not be made. Also important is this point: the cost of compensation depends on the selected program. And the bigger the size of the promised compensation insurance, the more restrictions and requirements would be out fees and early termination of the contract, says Grigoryants.
revitalization of the CNM proposal in the insurance market will only grow, experts predict. If you decide to choose this kind of insurance product you should carefully read the terms of the contract, to compare conditions with similar offers from other insurance companies in order to evaluate their level of financial self-discipline (late payment in this case can be critical), says Grigoryants.