Providing for the future

Life insurance

Permanent financial security: Providing for times of future need in a timely manner is a basic human right. We all long for personal financial security, particularly for the people who are especially important to us, but for ourselves as well. In times of plenty, humans have always created stockpiles and set aside financial reserves for “uncertain” times.

Nowadays, this is particularly important for the stage in life after retirement. And even a quick look at the public pension system shows that some personal initiative is needed. The Republic of Austria, for example, is already pumping €10 billion into the pension system year after year to keep it alive.

The remedy for this is traditional life insurance. Even with just small monthly contributions, it allows every person to set aside an additional something for their old age. UNIQA also offers a diversified portfolio in this sector, which is the second largest in the Group in terms of premiums.

A focus on savings products

The focus of UNIQA’s offerings is on classical capital-forming and unit-linked life insurance, on the one hand in the traditionally more popular savings-scheme option, and on the other hand against a single-premium policy. In a nutshell, the customer acquires the right to a one-time payment or a life-long pension. The claim usually occurs at the end of one’s working life or after reaching a certain age.

There are also “biometric products” which secure against risks such as occupational disability, long-term care needs or death. They ensure that the customers themselves or their relatives can rely on protection against financial problems in the event of an emergency. There are also package offers for corporate customers for company pension and termination payments.

The greatest possible degree of flexibility is important for private customers. Because circumstances in life change over time – and often your financial situation changes with it. This is why customers can, in many cases, freely design their UNIQA life insurance policy and modify it again and again throughout the term of their contract. In addition to the amount of the premium, this includes, for example, the chosen form of assessment, the beneficiaries named in the policy, adding additional coverage and much more.

UNIQA as a leader of innovation

In Central and Eastern Europe, the conventional life insurance model is currently facing major challenges. Historically low interest rate levels are adversely affecting all long-term forms of saving and investment, including life insurance. This requires the design of new products that provide a reasonable balance between return, investment and costs for both customers and for UNIQA.

As early as in December 2014, UNIQA Austria was the first insurance provider in Austria to introduce a brand-new model for classic life insurance to the market. It does away with a discount rate, but offers a 100-per cent capital guarantee on net premiums. The product is not only flexible and transparent, it also distributes the costs fairly: the closing costs, i.e. the commission for the sale, are not taken out in advance, but rather are earned over time. This guarantees customers a high redemption value right from the start.

UNIQA has also been offering a completely newly designed version of unit-linked life insurance since December 2017 – once again a novelty on the market. The resulting offered investment opportunities are very clear and easy to understand, and particularly interesting, for young people who have more than 15 years to contribute to their savings. It is also very attractive in terms of cost thanks to significantly lower initial charges.

3.9 million contracts in life insurance

Second-largest sector according to premium volume

Around 30 per cent of the premiums written by the UNIQA Group come from life insurance. That makes it, as previously mentioned, the Group’s second-largest business area. Private individuals account for about 95 per cent of the total premium volume; the remainder comes from corporate customers for occupational pension and termination insurance. In total, UNIQA manages 3.9 million contracts in this sector.

Around 66 per cent of the premiums written by the UNIQA Group in life insurance are in Austria, with CEE currently contributing around 34 per cent. In Austria alone, life insurance accounts for around 29 per cent of total premiums compared to 34 per cent in CEE. The CEE region in particular offers interesting growth potential, as the steadily rising standard of living increases the need for long-term hedging.