Compass to avoid getting lost in the world of insurance

BarcelonaThe insurance sector continues to grow and offers more and more options to suit the needs and budgets of all users. Specialists emphasize the need to be well-informed to pay as little as possible without leaving any important items uncovered. Choosing the best insurance involves adapting personal needs to the policies offered by insurance companies.

Experts recommend avoiding intermediaries and establishing clear economic priorities. The advice is to start with those goods or services that are essential for living., such as homes. The European Central Bank (ECB) warned months ago of the need to increase the purchase of insurance against climate-related disasters, such as floods or fires, also for businesses.

A thorough understanding of the contract's general terms and conditions and the clauses included in the policy is essential, as is adapting them to each individual's actual needs. Setting an affordable budget is a mandatory step, but industry experts recommend that the choice be based on more than just economics, as the products being compared often do not include the same coverage.

According to The annual report of the Statistical and Accounting Documentation (DEC)The traditional private insurance distribution sector in Catalonia closed the 2024 financial year with a turnover of €841.8 million in brokered premiums, 3.15% more than the previous year. Around a third of the total turnover corresponds to automobile insurance policies. One notable aspect is the growth in new policy production, with an increase of over 9%.

The report published by the General Directorate of Financial Policy, Insurance, and the Treasury of the Department of Economy and Finance of the Generalitat (Catalan Government) certifies that, of the total, 749 million euros came from the various life insurance businesses and 92.7 million euros from life insurance, with growth above the total recorded during the previous year of 2.60% and 7.82%, respectively. The results are prepared based on information provided by the 475 insurance brokers and 84 affiliated insurance agents registered in Catalonia, who carried out their activities during the 2024 financial year under the supervision of the Generalitat (Catalan Government).

The evolution of brokered portfolios between the two types of intermediaries is fairly consistent. Thus, insurance brokers, with a 3.46% reduction in the number of entities compared to 2023, increased the volume of brokered premiums in Life by 7.53% (10.41% in new production) and in Non-Life by 2.76% (10.47% in new production). Meanwhile, linked insurance agents, with a 1.20% growth in the number of entities compared to 2023, increased the volume of brokered premiums in Life (11.15%) and Non-Life (0.28%).

In terms of the weight of the different Non-Life insurance lines, auto continues to top the list year after year, accounting for 34.35% of the total; followed by healthcare (13.18%); home comprehensive insurance (11.04%); third-party liability (8.98%) and industrial comprehensive insurance (8.21%); community comprehensive insurance (7.02%); combined agricultural insurance (3.21%); and commercial comprehensive insurance (2.85%). These types of insurance represent 88.84% of total activity.

Key glossary to understand the fine print

• Sure. A contract by which one party guarantees the other, in the event of the event whose risk is the subject of coverage, compensation, capital, income or other agreed benefits in exchange for payment of a price.
• Lack. Period of time from the effective date of the benefit during which the guarantees or coverage specified in the insurance will not come into effect.
• Coverage. Commitment accepted by the insurer under which it will take charge, up to the limit of the agreed amount, of the economic consequences arising from an accident.
• Exclusions. These are situations agreed upon at the time the policy is signed and for which compensation will not be provided for reasons that are not easily quantifiable or that represent a high risk for the insurance company.
• Franchise. Percentage of the value of the insured items, from which the insurer's liability will begin to count.
• Warranty. It is the limit stipulated in the insurance contract through which the insurer takes charge of the economic consequences of an accident.
• Compensation. Financial compensation from insurance whose purpose is to compensate the insured for damages suffered covered by the policy.
• MediatorA mediator who intervenes between the insurance company and the insured to bring them to an agreement.
• Policy. Document containing the regulatory conditions of the insurance and detailing the agreed benefits.
• Collective policy. Group insurance is aimed at all individuals who are part of a homogeneous group. This offers more advantageous premiums than individual insurance.
• Unnamed policy. A group insurance policy that does not list all the insured's names, but rather includes them because they belong to a specific group.
• Premium. Amount paid by the insured person to an insurance company. The receipt must include any legally applicable surcharges and taxes.
• Benefit. Financial compensation or service to be provided in the event that the contingency covered by the insurance policy becomes a problem.
• Maturity. Date from which the contract is terminated or on which the stipulated terms are concluded due to the expiration of the period agreed upon in the contract.