How much money do we dedicate to insurance? How do we distribute it?

If we take into account the latest data on insurance billing in Spain, they indicate that the sector is experiencing a good moment. The insurers’ income from the sale of policies until September 2018 amounted to 48,210 million euros, a figure very similar to the previous year of which 26,563 million euros correspond to different non-life insurance (home, cars, health , …), while 21,647 million correspond to life insurance as reflected in the data of Cooperative Investigation of Insurance Entities (ICEA).


Data give us a good idea in aggregate form


But it may be that the increases in billing occur because more people are betting on products as necessary as life insurance or health insurance . To know how this expense is distributed, we must put it in context to the rest of the expenses of the family unit, something that we can see in the Family Budget Survey conducted annually by the National Statistics Institute (INE) .


Health insurance gains importance

Health insurance gains importance

As the name implies, this survey measures how the Spaniards distribute their spending budget, both individually and by household, an important unit, also in insurance. This is so, because, although there are insurance products related to the individual, such as life insurance, in many others it is by home. For example, a vehicle is usually a family or shared good, home insurance of course is or even health insurance, in which the most normal thing is to include in the policy all family members. It is important to note that this survey does not include life insurance as it is considered not an expense if not part of the client’s financial assets.

With these premises, these are the data for the year 2017 (last with the published survey), compared with the previous year.

Insurance expenses (non-life) of Spaniards    
  2016 2017 Variation
Home insurance € 290.39 € 287.65 -0.9%
Health related insurance € 1,153.88 € 1,186.42 2.8%
Insurance related to transport € 592.06 € 579.81 -2.1%
Burial Insurance € 321.77 € 321.78 0.0%
Other insurance (includes civil liability) € 262.00 € 244.35 -6.7%
Total € 2,620.10 € 2,620.01 0.0%

Globally, it is observed that Spaniards allocate an important amount in non-life insurance, 2,620.01 euros per household per year, a figure that has practically remained stable with respect to 2016 (2,620.10 euros).

We do have important changes in the distribution. Other insurances fall, including travel, assistance or civil liability (this barely hires 1 in 10 Spanish families) with a decrease of 6.7% spending 244.35 euros per household. The second insurance that spends less is precisely the one that exists the most per household, the one related to vehicles (it is hired by 4 out of 5 households). Its expenditure per household is 579.81 euros, 2.1% less.


The third one that falls the most is home-related insurance

The third one that falls the most is home-related insurance

which is hired by 7 out of 10 households. In this type of multi-risk insurance, it decreases 0.9% to 287.65 euros. Death insurance remains stable, which is contracted by 1 in 3 households, with only a variation of one cent from the previous year (321.78 euros are spent).

But the one that does gain positions and importance among Spaniards is health insurance. It rises to 1,186.42 euros per household and represents an increase of 2.8% over the previous year, but its importance in the non-life insurance budget goes up. It goes from 44% in 2016 to 45.3% in 2017. One of every three families is already committed to this protection in a trend that if we return to the billing data of the first nine months of 2018 will continue to grow.

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