Bancassurance – Among the network banks, the least exposed ones suffer the most from the collapse of life insurance collections in 2023

Milan, 12/13/23 – The year 2023 will also be remembered as the annus horribilis of life insurance policies, with net inflows that could be negative for the first time in 20 years, from around +15 billion in net inflows in 2022 in September 2023, in fact, it will drop to -15 billion euros, either due to the rate increase implemented by the ECB or due to the Eurovita case. Both the anomalous increase in redemptions of life products recorded in 2023 and the reduction in premium collections contributed to determining this result, from which in September 2023 the banks networks of financial advisors were suffering in particular (-22% reduction in collections between September 21st and September 23rd, compared to -10% of the agency channel and -4% of the bank and post office branches). And among the networks that pay the most, they could be the least exposed to the insurance business, i.e. those with an average insurance portfolio per consultant of less than 5 million euros (Zurich Bank, BNL Life Banker, CheBanca!, Widiba, – 121% of the collection insurance net in September 2023 compared to the result recorded in 2022), followed by networks with an average insurance portfolio per consultant of between 5 and 10 million euros (Fideuram, Fineco, Mediolanum and Credem Euromobiliare, – 110%) and by networks with average insurance portfolio per consultant exceeding 10 million euros (Banca Generali and Allianz Bank, -89%). This is stated by a study by Excellence Consulting.

According to research by the Milanese consultancy firm, carried out on the basis of processing of ASSORETI, IVASS and ANIA 2023 data, overall net insurance collection in Italy was 30.3 billion in 2021, falling to 15.4 billion in 2022, to reach the minus sign (-15.5 billion) in the third quarter of 2023. Total premium income drops from 105.9 billion (2021) to 94.2 billion (2022) to 67.3 billion (Sep. 2023). The most affected are the networks of financial advisors whose premium collection drops from 17.4% of the market total (Sep. 2021) to 14.6% (Sep. 2022) to 12.5% (Sep. 2023), average annual reduction of -22% sep. 2021/Sep. 2023. Less significant result for the agency channel (respectively: 13.9%, 13.4%, 13.1%, reduction -10% Sep. 2021/Sep. 2023) and the bank and post office branches (57.4% , 58.8%, 61.4%, -4% reduction Sep. 2021/Sep. 2023). For completeness, it should be remembered that direct sales and those of brokers represent 11.3% (Sep. 2021), 13.2% (Sep. 2022) and 13.1% (Sep. 2023) of the total. prize collection.

In detail of the performance of the individual network banks, Excellence Consulting has grouped the intermediaries by cluster depending on the average insurance portfolio per consultant: “cluster 1” (portfolio greater than 10 million, Banca Generali and Allianz Bank), “cluster 2” (portfolio from 5 to 10 million, Fideuram, Fineco, Mediolanum, Credem Euromobiliare), “cluster 3” (portfolio less than 5 million, Zurich Bank, BNL Life Banker, CheBanca!, Widiba). In September 2023 compared to the whole of 2022, the reduction in the net insurance collection of “cluster 3” is worth -1 billion (-121%), that of “cluster 2” -5.8 billion (-110%), that of “cluster 1” -2.1 billion (-89%). In the same period, the gross insurance collection of “cluster 3” decreased by -0.6 billion (-44%), that of “cluster 2” by -5.3 billion (-44%), while that of “cluster 1 ” of -1.9 billion (-29%). On the other hand, redemptions for “cluster 3” increased by 384 million (+63%), those of “cluster 2” by 466 million (+7%), finally those of “cluster 1” by 260 million (+6%) .

“The issue of the race to redeem life insurance policies – states Maurizio Primanni, CEO of Excellence Consulting – was among the most debated in 2023, also thanks to the Eurovita case, resolved thanks to the work of IVASS and the availability, as well as of the distributing banks of the former Eurovita network, also of the large companies of our country (Allianz, Generali, Intesa Vita, Poste Vita, Unipol) which created the newco Cronos Vita, which took over the former Eurovita portfolio. Also weighing on the 2023 net collection result was a significant drop in gross premium collection due to the ECB’s repeated interest rate increases and the consequent preference of customers towards government bonds. We went to see why the black year of life insurance policies had negative consequences on gross collections, most evident on banks and networks of financial advisors. The reason why among them those with the lowest average insurance portfolio per financial advisor are currently suffering the greatest damage is that in the insurance business what makes the difference is the knowledge and experience that the advisors have of products with a level of medium high complexity. From here also arise consequent considerations regarding the importance of investing in consultant skills and insurance consultancy tools to exploit the development opportunities for life and non-life bancassurance that our country offers.”