Good practice guide on individual life risk insurance – The insurance blog

Good practice guide on individual life risk insurance

  • 14.5 million people in Spain have an individual product of these characteristics
  • 23 insurers, covering 67% of the life insurance market, have adhered to the document
  • This new Unespa guide adds to the guide to simplify the insurance language

The insurance sector takes another step forward in the adoption of best business practices. UNESPA, the Insurance Business Association, has just published the  Guide to good practices on individual life risk insurance,  to which its associated entities can adhere voluntarily.

The main objective of this document is to increase the transparency and understanding of individual risk life insurance by consumers, to facilitate the comparison of products between the existing alternatives in the pre-contracting phase (pre-contractual information), and to promote certain good practices in the sale of these insurances.

The guide consists of two parts:

  • A first part in which the insurers that adhere to it assume commitments in relation to the sale of individual life risk insurance in the following matters:
    • Customer risk statement prior to hiring: health questionnaires.
    • Non-discrimination in contracting individual life insurance risk for disability, HIV / AIDS or other health conditions.
    • Combined sale of a mortgage loan and individual risk life insurance.
    • Payment of the benefit.
  • A second part in which the insurers that adhere to it undertake to provide, prior to contracting, a standardized prior informative note. This prior informative note must have, at least, the content that is included in the annex to the guide, and present it with the same structure and order.

Individual risk life policies are particularly widespread in Spain. Specifically, about 14.5 million people had one as of December 31, 2017. These products generated income of 3,250 million euros at the end of last year.

Insurance is committed to business excellence and best corporate practices. For this reason, it wishes to go further in the commitments acquired with its clients than what is established by regulation and has prepared good practice guides that cover 13 subjects. These guides specifically address topics such as health, funeral, auto, multi-risk, individual life-savings and payment protection insurance; as well as corporate governance, internal control, disability, internet, marketing, complaint resolution, and language. To this list is now added the  Good Practice Guide on Individual Life Risk Insurance .

The preparation of good practice guides is part of  We Are Safe , the plan launched by UNESPA in 2016 to promote the social value of insurance. The new guide on individual life risk insurance is a testimony of how insurance is anticipating, on its own initiative, the requirements established by national and European regulations. The full document is available in the self  – regulation section  of the UNESPA website. The entities that adhere will have an adaptation period to comply with the obligations derived from the guide.

This guide has the support of 23 entities at the time of its launch. Together they cover 67% of the total life insurance market measured in technical provisions. Specifically, they are these companies:

BANKINTER LIFE
BANSABADELL VIDA
BBVA INSURANCE
CAJA ESPAÑA VIDA
CCM LIFE AND PENSIONS
GENERALI SPAIN
IBERCAJA LIFE
KUTXABANK INSURANCE
KUTXABANK LIFE AND PENSIONS
MAPFRE VIDA
MUTUA MADRILEÑA
NORTHERN SPAIN INSURANCE
PELAYO LIFE
ULTRA SAFE PLUS
ST. LUCIA
SANTA LUCIA LIFE AND PENSIONS
SANTANDER INSURANCE
SANTANDER LIFE
INSURANCE BILBAO
WESTERN CATALAN INSURANCE
UNICORP LIFE
VIDACAIXA
ZURICH LIFE

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