The new bancassurance products that are coming to Greece as well

By Leonidas Stergiou

The enrichment and modernization of existing insurance products and the arrival of new ones in the Greek market will be completed in three phases with a horizon of 2023.

Already, large insurance groups with cooperating banking institutions are planning new generation bank insurance products, in a market of 1.2 billion euros, which is projected to grow at an annual rate of 50-60%. According to executives of banks and insurance companies, the new products will aim to cover any kind of risk, while offering the possibility of personalized solutions for individuals and businesses. For this reason, corresponding electronic platforms will be developed, where the interested party will describe the needs, the possibilities, the objectives and the risk profile, in order to suggest appropriate combinations or alternative products.

Simplification, speed and digitization

The first phase has already begun with the redesign of insurance packages of all categories, taking into account the new needs that have been created, as well as the change in consumer behavior. The first step involves more flexible and simple products, with faster procedures and compensation. They will also be available from the banks’ digital channels. The consumer will be able to buy the insurance package he is interested in or to combine benefits from different programs. This stage includes all known insurance products (losses, accidents, health, investment-related insurance, etc.). This is to be completed within the first half of the year.

Enrichment

The second phase includes the expansion of insurance programs for individuals and businesses, including new risks. These products will cover risks such as the loss of a business’s wallet or turnover, up to cyber attacks or online scams, in addition to real estate or merchandise. They will also be able to cover compensation or commitments (eg from loans or cards) in case of unemployment, health problems or death. Covers will offer simpler costing to cover content from home theft etc. The design phase has already begun as new bank insurance products have already appeared, which combine insurance coverage and investments or offer alternative ways of saving or raising capital, even with gradual payments. These payments can be fixed or variable and will be aimed, for example, at raising funds for the children after retirement or education. Such solutions existed and exist in the Greek market. The new version of these products will offer personalized alternatives, depending on the needs and the amount of risk that one can take. In addition, they will offer the flexibility of a gradual payment, which at a later stage may not be a fixed amount or the periodicity may not be fixed (eg when and for as long as the saver can and not every month or semester). Perhaps, products with so much flexibility will appear a little later than the end of 2022.

Launch of debut products

The third phase, which is expected in 2023, includes the launch of new solutions that are already in great demand abroad. An illustrative example is the insurance for pets that will cover costs in case of operations, examinations, etc. In fact, abroad, such products have been circulating for several years and have been specialized even per pet (eg cats, dogs, etc.). A search in e-bookstores is enough to find that there are even guides with tips on how to choose the right insurance plan for your pet.

Surveys of domestic players show that the market related to pets in general has shown great resilience during the recent crises (fiscal and pandemic), while it is growing rapidly. Among the sizes considered are the turnovers for food, medicine, medical examinations, treatments, surgeries, or for grooming.