Life insurance

Saving for a rainy day: we all long for personal financial security – both for the people who are especially important to us and for ourselves. In times of plenty, people have always created stockpiles and set aside financial reserves for later.

Today this protection is particularly important for the chapter of our life after we retire. And when taking a look at the state pension systems, it is also worth taking personal initiative. The Republic of Austria, for example, needs to pump the considerable sum of almost €9 billion into the pension system each year just to keep it alive.

People who do not want to rely upon it resort to a 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 multitude of products in this business segment, which is the second largest in the Group in terms of premiums.

Regular savings or single premium

Our customers have two options: the classic capital-forming and unit-linked life insurance. They can choose either the traditionally more popular savings scheme, or go for a single premium alternative. The customer acquires the right to a one-time payment or a life-long pension. As soon as they retire or reach a certain age, the insured event occurs and they receive the agreed benefit.

So-called “biometric products” provide extra protection 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. For corporate clients we also offer modular packages with company pension and termination payments. Private customers in particular enjoy the high degree of flexibility this offers, adaptable to people’s living situations which will change over time just as much as their financial situation does. In many cases, customers are free to design their UNIQA life insurance policy and to modify it throughout the term of their contract. This includes not only the amount of the premium and the chosen form of investment, but also the beneficiaries named in the policy, adding additional coverage and much more.

UNIQA fills the innovation gap

The conventional life insurance model is currently facing major challenges in Central and Eastern Europe, mainly due to the historically low interest rates which are a burden on all forms of long-term savings and investment. This means that we, too, must design new products that provide a reasonable balance between return, investment and costs for both customers and for UNIQA.

That was one of the reasons why, as early as in December 2014, UNIQA was the first insurance provider in Austria to introduce a brand-new model for classic life insurance to the market. Its main features are the elimination of the discount rate and a 100 per cent capital guarantee on the net premium. The product is not only flexible and transparent, it also distributes the costs fairly. For example, we do not take the commission – the acquisition costs for sales – up front, but rather out of the income generated, distributed over the entire term of the insurance. This guarantees customers a high buy-back value right from the start.

In unit-linked life insurance, too, we have been offering a completely newly designed version since 2017 that is – once again – unique in the market. The new product is particularly interesting for young people who still have more than 15 years to contribute to their savings. The significantly lower issue surcharges and the resulting lower costs also make this life insurance very attractive.

4.2 million contracts in life insurance

Servicing 4.2 million contracts

As mentioned above, with around 26 per cent of the premiums written by the UNIQA Group, life insurance is the Group’s second-largest business area. Private individuals account for 95 per cent of the total premium volume, the rest comes from corporate customers for occupational pension and termination insurance. UNIQA manages an impressive 4.2 million contracts in this sector. Around 71 per cent of the premiums written in the life insurance segment come from Austria, with CEE contributing the remaining 29 per cent. In Austria, life insurance accounts for around 26 per cent of total premiums, and in CEE it is also 26 per cent. As in other areas, the CEE region in particular offers interesting growth potential, as the steadily rising standard of living is also increasing the need for long-term security.