Estamos Seguros Report

Transcription

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2 Check the extended version of this report at or (only available in Spanish) Estamos Seguros Report 2017 UNESPA. Association of Spanish Insurers. Núñez de Balboa, Madrid. Spain. Telephone (+34)

3 The best analysis of the insurance activity in

4 INDEX 01. INSURANCE ID INSURANCE AND THE SPANISH PEOPLE LIFE INSURANCE MOTOR INSURANCE HEALTH INSURANCE PROPERTY INSURANCE BURIAL SERVICES INSURANCE BUSINESS INSURANCE INSURANCE AS AN INSTITUTIONAL INVESTOR WHY SOLVENCY IS SO IMPORTANT INSURANCE AND ITS PROVIDERS INSURANCE AND ITS EMPLOYEES A COMMITMENT TO TALENT AND ENTREPRENEURISM 24 LETTER FROM THE PRESIDENT 26

5 01. INSURANCE ID Medical services CLAIMS/HOUR: The purpose of insurance is to help people, businesses, institutions and other economic agents when they suffer an unexpected setback. It helps them get back on their feet. Insurance protects all types of policy holders from all sorts of danger and is ceaseless in its broad endeavour. This support is increasingly provided through a service. On other occasions, it comes in the form of compensation. In one form or another, insurance companies return 5.2 million euros lost by their customers as a result of these claims every hour. Insurance contributes around four percentage points to the economic wealth created each year. Credit and surety CLAIMS/HOUR: 2,112 Fire and other property damage CLAIMS/HOUR: 1,266 Other motor insurance CLAIMS/HOUR: 699 PROBLEMS SOLVED BY INSURANCE EVERY HOUR OF THE YEAR. Miscellaneous pecuniary losses CLAIMS/HOUR:10 Motor Third Party Liability CLAIMS/HOUR: 293 Assistance CLAIMS/HOUR: 191 Income protection CLAIMS/HOUR: 32 Worked-related accidents CLAIMS/HOUR: 1 Air and sea transport CLAIMS/HOUR: 95 Legal defence CLAIMS/HOUR: 23 General public liability CLAIMS/HOUR: 99 Source: Own calculation of Estamos Seguros based on data from the Dirección General de Seguros y Fondos de Pensiones. DID YOU KNOW? LIFE INSURANCE PAYMENTS ACCOUNT FOR 4% of disposable household income. Insurance manages new personal savings worth 500,000 EUROS EVERY HOUR. INSURANCE PAYMENTS AS A % OF GDP Damage to goods 1.34% Personal damage 2.80% 2 3

6 02. INSURANCE AND THE SPANISH PEOPLE PERCENTAGE OF HOUSEHOLDS CONTRACTING DIFFERENT TYPES OF INSURANCE. BY AUTONOMOUS REGION. 0% 20% 40% 60% 80% 100% The most popular insurance policies are present in 96% of households. Only one in every 25 households in Spain has no insurance whatsoever. Spanish people invest 4.50 of every 100 euros they earn to protect themselves, their homes, their vehicles, etc. The most common combination is motor and home policies, but the insurance protections favoured by households vary according to region. AND ARA Property Motor Health Burial Travel assistance 67.60% 71.28% 79.69% 74.62% 28.59% 19.41% 66.78% 30.64% 15.89% 3.54% Civil liability 17.87% 3.34% Other insurance 18.45% 3.74% PERCENTAGE OF HOUSEHOLD BUDGET ALLOCATED TO INSURANCE. AST BAL CAN 76.48% 61.99% 54.93% 75.23% 83.49% 82.30% 14.66% 37.48% 36.11% 55.11% 37.61% 66.12% 3.07% 13.11% 23.60% 5.23% 13.37% 26.35% 4.43% 17.82% 26.04% 3% 3.5% Galicia 4.89% 4% 4.5% 5% 5.5% La Rioja 3.81% Cantabria 4.66% Asturias 4.32% Basque Country 4.46% Navarre 3.70% Aragón 3.71% Catalonia 4.61% CANT CYL CLM CAT C. VAL EXT 80.81% 76.47% 67.03% 74.26% 75.22% 70.19% 77.66% 78.81% 82.85% 78.77% 82.06% 85.35% 19.32% 14.42% 25.94% 39.73% 15.58% 30.32% 44.42% 38.03% 56.40% 41.87% 47.55% 71.41% 4.60% 3.66% 14.23% 13.10% 0.94% 22.28% 5.91% 5.59% 17.32% 13.74% 1.95% 23.70% 6.04% 8.90% 19.67% 15.58% 1.59% 24.52% Castilla and León 4.13% Madrid 5.02% GAL MAD 64.65% 79.13% 81.11% 78.28% 23.69% 45.98% 51.29% 47.13% 10.63% 19.42% 11.81% 19.84% 13.36% 20.87% Castilla-La Mancha 4.36% Extremadura 4.60% Community of Valencia 4.40% Balearic Islands 4.82% MUR NAV PV 75.36% 87.15% 88.15% 84.23% 81.79% 76.53% 23.33% 21.15% 31.20% 63.09% 37.88% 46.45% 17.09% 15.13% 13.54% 18.84% 16.33% 14.75% 19.82% 17.54% 14.48% Andalusia 4.23% Murcia 4.00% LR 80.51% 79.84% 25.44% 36.54% 13.80% 15.56% 16.24% CEU 51.69% 77.12% 32.20% 44.07% 22.03% 22.88% 25.42% MEL 30.51% 81.36% 38.14% 34.75% 27.97% 29.66% 36.44% Canary Islands 4.40% Ceuta 4.04% Melilla 3.39% Source: Household Budget Survey. ES 73.59% 79.85% 27.73% 49.93% 12.42% 13.80% Source: Own calculations of Estamos Seguros based on the Household Budget Survey (EPF) compiled by INE % 4 5

7 03. LIFE INSURANCE AN INSURANCE POLICY FOR EVERY NEED S ophistication is the key feature of life insurance. What started off as a very simple product has developed over time to create multiple versions of itself in response to changing customer needs. Today, life insurance A PRODUCT FOR EVERY CONCERN AND EVERY NEED PLAN DE PREVISIÓN ASEGURADO (PPA) Average saver profile 56 to 65 years old Investor profile Conservative Annual contribution cap 8,000 Compatible with other products: PIAS and SIALP LIFE AND TEMPORARY ANNUITIES Average saver profile 65 to 85 years old Investor profile Conservative Annual contribution cap 240,000 Main tax benefit Capital gains obtained by a person aged 65 are exempt from taxation if the proceeds are reinvested in an annuity. The annuities themselves do also have certain tax benefits. Can it be redeemed? Yes, but tax benefits are lost. covers unexpected death and disability. But it also ensures well-being after retirement. Savings tools differ because no two savers are the same. Therefore, there is a wide range of insurance products to meet the requirements of each individual. DEFERRED CAPITAL Conservative Main tax benefit Accumulated income is taxed as any other income from savings. Can it be redeemed? Yes Average saver profile 46 to 55 years old Investor profile Annual contribution cap No cap Guaranteed return? Yes, unless it is redeemed before the agreed date. PLAN INDIVIDUAL DE AHORRO SISTEMÁTICO (PIAS) Conservative Main tax benefit The return accumulated by the customer is exempt from taxation if it is collected in the form of an annuity and provided that at least five years have elapsed since the first contribution. Can it be redeemed? Yes, but tax benefits are lost. Guaranteed return? Average saver profile 18 to 50 years old Investor profile Annual contribution cap 8,000 (max. 240,000 in total) Compatible with other products: PPA and SIALP. The product may or may not offer a guaranteed return. (Unit linked) SEGURO INDIVIDUAL DE AHORRO A LARGO PLAZO (SIALP) Moderate Main tax benefit The return accumulated is exempt from taxation if at least five years have elapsed since the first contribution. Can it be redeemed? Yes, but the tax benefits are lost if the product is redeemed before 5 years have elapsed. Guaranteed return? Average saver profile 46 to 65 years old Investor profile Annual contribution cap Compatible with other products: PPA and PIAS. Guarantees at least 85% of the premiums paid on maturity- Risk-tolerant Main tax benefit Accumulated income is taxed as any other income from savings. Can it be redeemed? Yes Guaranteed return? No UNIT-LINKED Average saver profile 56 to 75 years old Investor profile Annual contribution cap No cap AVERAGE LIFE INSURANCE COMPENSATION PAID ON DEATH, BY AGE OF THE DECEASED. Main tax benefit Deferred taxation. Reduction of contributions made in the taxable income. Payments are taxed as earned income. Can it be redeemed? No. It is illiquid until retirement or under certain especial cases (serious illness, long-term unemployment, etc.) Guaranteed return? Yes, unless it is redeemed before the agreed date. Guaranteed return? Yes, unless it is redeemed before the agreed date. Notice: The present infographic is a summary version. The full description can be found in the 2017 We Are Safe Report (full version). This publication can be downloaded at Up to 25 years From 26 to 40 years From 41 to 50 years From 51 to 60 years From 61 to 70 years From 71 to 80 years 13,042 38,829 36,162 29,648 25,791 33,

8 04. MOTOR INSURANCE ESTIMATE OF VEHICLES REPAIRED BY INSURANCE COMPANIES EACH YEAR. A WORLD OF SERVICES For a long time now, motor insurance has not only been about the liability that arises when we cause an accident. Motor insurance today is a raft of large scale services of proven efficacy. It aims to address the consequences of road accidents on people, vehicles and objects. Given the number of vehicles on the road, it is an activity in constant motion ,221, ,208, ,893,252 TRAFFIC CLAIMS SOLVED BY INSURANCE EACH DAY IN SPAIN ,635,609 Travel assistance 11,153 CLAIMS Own damage 6,620 CLAIMS Legal defence services 546 CLAIMS ,746, ,500, ,470, ,059, ,061,840 Broken windows 3,833 CLAIMS Fire 17 CLAIMS ,216, ,976, ,752,020 Source: Own calculations made by Estamos Seguros. Occupants 81 CLAIMS Personal injury 1,581 CLAIMS Vehicle damage 5,463 CLAIMS Revoked licence Claims for damages 265 CLAIMS 2 CLAIMS Theft 394 CLAIMS Source: Own calculations made by Estamos Seguros. 8 9

9 05. HEALTH INSURANCE 2017 Health insurance is becoming increasingly important in Spain. There are 11.5 million health insurance customers. 10 million of these have a health insurance policy. Therefore, one in five people has health insurance cover through individual or collective policies. It features increasingly among the social benefits offered by companies to their employees. In addition to the health services cover, the product includes subsidies insurance. This product guarantees compensation for the insured person in the event they are not able to work due to illness or hospitalisation. The policy is particularly suitable for self-employed workers as it relieves concerns over any potential setbacks in their health. PRESENCE OF HEALTH INSURANCE IN THE GENERAL POPULATION, BY PROVINCE. TOTAL Nº of insured: 9,906, % PRESENCE OF HEALTH SERVICES INSURANCE IN THE GENERAL POPULATION. Private insurance Nº of insured: 4,182, % Mutual insurance for civil servants Nº of insured: 1,849, % Other groups (businesses) Nº of insured: 3,152, % Reimbursement of medical expenses Nº of insured: 721,352 Palencia Biscay Alava Cantabria Guipúzcoa Asturias La Coruña Lugo Pontevedra León Navarre Orense Burgos La Rioja Huesca Lérida Gerona Zamora Valladolid Soria Saragoza Barcelona Segovia Tarragona Salamanca Guadalajara Ávila Madrid Teruel Castellón Cáceres Toledo Cuenca Valencia Ciudad Real Balearic islands Albacete Badajoz Córdoba Huelva Seville Málaga Las Palmas Cádiz Ceuta S. C. Tenerife Alicante Jaén Murcia Granada Almería Melilla 0% 10% 20% 30% 40% 1.5% Source: Own calculations made by Estamos Seguros based on INE data. Source: Own calculations made by Estamos Seguros based on INE data

10 06. PROPERTY INSURANCE BREAKDOWN OF REPAIR SERVICES REQUIRED BY INSURED HOUSEHOLDS. Distribution of repair services Estimated equivalent employment derived from home repairs paid by insurance Average repair time, by guilds. Over time, property insurance has developed from paying back the amount of the repair to the customer to carrying out the repair itself. Specifically, multi risk insurance policies offer a wide variety of services involving a substantial number of repair workers, whose activities and employment are in a large part sustained by the insurance business. It is important to highlight that all insurance companies require the providers of these services to be current with their legal, tax and social security obligations to ensure that the work is performed with the highest guarantees and total transparency. Masonry Carpentry Locksmith Windows and glass 7, % 6, % 2, % 4, % Multi trade Other Parquet and other flooring Painting 4, % 6, % 3, % 6, % Electrician % 5 Appliance repair 5, % 6 Plumbing 9, % 6 Source: Own calculations made by Estamos Seguros. THE 10 MOST COMMON REPAIR SERVICES REQUIRED TO RESOLVE CLAIMS FOR HOUSEHOLD INCIDENTS. % Percentage % Accumulative 1. Plumbing service 24.9% % windows and glass service 15.5% % 6. Plumbing service + Painting service 4.2% 74.1% 7. Masonry service + plumbing service + painting service 4.0% Locksmith service 3.5% 81.7% 78.2% 3. Masonry service 14.9% % 4. Appliance repair service 10.2% % Electrician service 4.4% 69.9% Masonry service + plumbing service 2.2% 83.8% 10. Painting service 1.9% 85.7% Source: Own calculations made by Estamos Seguros

11 07. BURIAL SERVICES INSURANCE B urial services insurance has a deep-rooted history in Spain. This is reflected in its widespread use among the population. Almost half the Spanish people have burial services insurance. Estimates suggest that around 60% of deaths in the country are covered by burial insurance. In 2017, around 255,000 funerals were arranged. The aim of this service is to help families at a very difficult time. 08. BUSINESS INSURANCE A large part of the insurance industry s activity is centred on businesses, to which it provides stability by ensuring that they receive compensation for damages caused by unexpected incidents. Available data suggest that the volume of assistance provided by insurance cover for this segment during the hard crisis years was largely unchanged. During the hard times, insurance was where it should be. PRESENCE OF BURIAL INSURANCE AMONG DEATHS EACH YEAR. 250, , , , ESTIMATED BUSINESS INSURANCE PAYMENTS Industrial fires Construction Estimated business insurance payments Average business insurance payments Theft INSURED PRESENCE OF BURIAL INSURANCE BY PROVINCE. 0% 20% 40% 60% 80% Source: Own calculations made by Estamos Seguros based on ICEA and INE data. UNINSURED Source: Own calculations made by Estamos Seguros based on INE data. Province Presence Province Presence Álava Albacete Alicante Almería Asturias Ávila Badajoz Balearic isl. Barcelona Burgos Cáceres Cádiz Cantabria Castellón Ceuta Ciudad Real Córdoba Cuenca Gerona Granada Guadalajara Guipúzcoa Huelva Huesca Jaén Corunna 25.55% 59.19% 46.19% 45.44% 64.16% 71.39% 70.95% 22.04% 34.28% 25.61% 69.06% 78.79% 47.38% 34.71% 38.57% 67.56% 56.51% 25.97% 24.40% 48.82% 32.36% 42.26% 66.34% 19.88% 60.88% 48.66% La Rioja Las Palmas Leon Lérida Lugo Madrid Málaga Melilla Murcia Navarre Orense Palencia Pontevedra S.C. Tenerife Salamanca Segovia Seville Soria Tarragona Teruel Toledo Valencia Valladolid Biscay Zamora Saragossa 29.01% 61.55% 47.52% 24.69% 26.80% 39.12% 58.69% 18.88% 57.84% 23.22% 41.50% 32.01% 55.03% 49.47% 51.72% 44.92% 61.50% 17.70% 37.34% 20.76% 55.44% 47.42% 34.51% 42.84% 32.12% 39.82% 36,092,027 74,514,596 15,872,273 3,487 3,470 7,557 Transport (goods) Mechanical breakdown Industrial multi risk 108,182,794 83,833, ,513,040 2,048 Transport (hull) 1,686 Electronic equipment 2,573 Assembly 135,870,403 2,393 36,524 4,173 Source: Own calculations made by Estamos Seguros, 14 15

12 09. INSURANCE AS AN INSTITUTIONAL INVESTOR PROPERTY ASSETS OF THE INSURANCE SECTOR, BY REGION. BARCELONA 2,100,221,178 The inherent benefit of insurance for the economy is twofold. Firstly, the claims paid prevent many individual, financial and group projects from failing. However, insurance money is also used to make prudential investments, with a clear long-term horizon, while it remains unused. This makes the Spanish insurance sector a provider of stable financing, the type of financing most needed by economic agents. The State is the main beneficiary because there is a clear mission to invest insurance money in public debt. MADRID 5,499,831,664 SPAIN 10,294,316,541 INSURANCE INVESTMENT PORTFOLIO (IN MILLIONS OF EUROS) OTHER PROVINCES 2,694,263,701 TOTAL 287,774 Spanish public debt 127,334 DAILY NET ACQUISITION OF INSURANCE SECTOR FINANCIAL ASSETS Cash and deposits Short-term fixed income Long-term fixed income Short-term loans Long-term loans Stock markets Unlisted shares Investment funds Other interests 1,787,993 57, , , , ,277 2,441, ,701 19,126,859 Source: Own calculations made by Estamos Seguros based on Bank of Spain data. Financial derivatives Other -242,660 2,459,007 Spanish securities 11,920 Foreign securities 4,015 Spanish corporate debt 24,265 Foreign corporate debt 37,019 Foreign public debt 24,196 Foreign funds 10,892 Spanish funds 9,283 Cash 25,028 Real Estate 10,414 Mortgages 34 Other 932 Source: DGSFP Loans 2,

13 10. WHY SOLVENCY IS SO IMPORTANT LEVEL OF COVERAGE OF THE OBLIGATORY SOLVENCY CAPITAL (CSO) IN THE EUROPEAN ECONOMIC AREA Solvency is a topic never or rarely talked about. However, without it, the insurance guarantee, especially for long-term products, would not exist. Solvency is the hidden, or silent, power used by insurance companies to meet their commitments, both present and future. It comprises three basic lines: current payment capacity, reflected in the annual claims payments; future payment capacity, reflected in the technical provisions; and lastly, capacity to SPANISH INSURANCE SECTOR SOLVENCY REQUIREMENTS respond to adverse events, which is the solvency margin itself. The rules for calculating the solvency requirements have changed recently, becoming much more stringent. Under this new calculation methodology, the Spanish insurance sector is still eminently stable. SPANISH INSURANCE SECTOR PROVISIONS Life 180,469,263, ,855,627,669 11,189,329, (UP TO SEPT.) Ireland 1.73 UK 1.51 France 2.23 Denmark 3.04 Luxemburgo 2.30 Netherlands 1.77 Belgium 1.76 Norway 2.06 Germany 3.23 Italy 2.20 Sweden 2.65 Czech R Austria 2.76 Poland 2.69 Hungary 2.24 Finland 2.01 Romania 1.62 Estonia 1.93 Latvia 1.43 Lituania 1.95 Bulgaria 1.96 Eslovaquia 2.29 SPACE SET EUROPEAN ECONOMIC 2.11 Coverage 2.39 Motor Health Multi risk 11,623,244,659 2,045,468,418 3,074,995,183 6,358,115,176 6,548,893,155 Portugal 1.47 Spain 2.40 Liechtenstein 2.34 Malta 3.98 Croatia 2.27 Slovenia 2.40 Source: Own calculations made by Estamos Seguros based on Eiopa data. Greece 1.62 Cyprus 2.70 Coverage 2.49 Required margin 22,200,007,383 Other 14,750,422,697 15,330,591,693 Source: DGSFP. Excess funds 33,494,432,976 Excess funds ,867,228,775 22,426,268, (UP TO SEPT.) Required margin Source: DGSFP, 18 19

14 11. INSURANCE AND ITS PROVIDERS The insurance measures carried out after an incident give rise to a flurry of interactions between the insurance companies and various professionals, particularly relating to repairs. Through its operations, the insurance sector becomes a source of work for many of them. Demand for insurance-related services is estimated to create between 550,000 and 600,000 jobs. 545,032,530 24, ,422,165 38,413 Funeral services AVERAGE NUMBER OF VEHICLES REPAIRED AT AUTO WORKSHOPS DUE TO TRAFFIC ACCIDENTS COVERED BY INSURANCE COMPANIES Galicia La Rioja 68 Cantabria Basque country Asturias Navarre Aragón 59 Catalonia 76 Health sector (traffic accidents) SPAIN 74 Castilla y León 65 Castilla-La Mancha 52 Extremadura 53 Andalusia 80 Murcia 64 Madrid 88 Comunidad Valenciana 72 Balearic islands 94 Household repairs MAIN SUPPLIERS OF SPANISH INSURANCE IN 2017 Canary islands 76 Ceuta 94 Melilla 160 1,671,914,736 74,903 Health sector (health insurance) Source: Own calculations made by Estamos Seguros based on Dirce data, Payments made to the main Spanish insurance providers in 2017 Induced employment equivalent deriving from insurance claims paid, 5,611,211, ,386 3,582,543, ,500 Auto repair workshops Source: Own calculations made by Estamos Seguros

15 12. INSURANCE AND ITS EMPLOYEES AVERAGE SENIORITY OF EMPLOYEES. BY SECTOR. Public administration, education and healthcare YEARS 14.6 WOMAN 17.5 MEN 15.7 BOTH GENDERS The insurance sector provides some of the highest quality jobs. This is reflected in the stability of the contracts offered, remuneration, equality policies, compliance with regulations on disability, etc. The sector marks an extremely positive, at times excellent, trend in all these fields, reflecting the stability of these high added value positions. Insurance Agriculture, livestock farming and fishing Mining and electricity Machine industries Total economy Food, textiles, leather, wood and paper industry Finance (including insurance) Transport and communications Construction Permanent employees 96.04% Commerce and hospitality Other services Source: Own calculations made by Estamos Seguros based on ICEA and EPA data PERCENTAGE OF TEMPORARY STAFF IN THE INSURANCE SECTOR WORKFORCE. LEVEL OF COMPLIANCE WITH LISMI REGULATIONS IN THE INSURANCE SECTOR 1 ORDINARY WAGE COST BY SECTOR (INSURANCE = 100) Coke and refined petroleum products Supply of electricity, gas, steam and air conditioning Financial services, excluding insurance and pension funds Telecoms 155,32 152,82 150,18 118,32 Trade hires 1.25% Insurance, reinsurance and pension funds, excluding Social Security Office Legal and accounting activities 100,00 87,98 Disabled employees 1.28% Public administration and defence; Social Security Office Education Building construction 78,13 70,37 69,97 Donations / Sponsorships 0.23% Property activities Administrative work and other ancillary activities provided to companies 65,35 56,47 Temporary staff 3.96% 1.The LISMI requires that 2% of a company's workforce be differently-abled. This figure is calculated on the basis of the number of employees hired directly, those that act as suppliers and those that benefit from donations or sponsorships extended by the company. Retail activities, excluding motor vehicles and motorbikes Building services and gardening activities 50,93 36,84 Source: ICEA. Source: ICEA. Source: INE

16 13. A COMMITMENT TO TALENT AND ENTREPRENEURISM PROFILES OF INTEREST TO THE INSURANCE SECTOR TODAY Post and Qualifications Characteristics IT SPECIALIST Insurance is a cutting-edge industry, accustomed to innovation. Therefore, it is always on the lookout for talent. The insurance sector is constantly seeking professionals at the head of their field that will allow it to forge boldly ahead and respond to its customers needs. Insurance companies also have a strong commitment to entrepreneurism, mainly through their marketing component. The sector is centred on training and consolidating its workforce. Each year, 9,000 new entrepreneurs are trained; for an investment that can reach 10,000 euros each. Internet 1.20% Other channels 3.15% Agents 27.10% Exclusive insurance agents - natural persons Exclusive insurance agents - legal entities 63,704 11,890 Object-oriented programming and data bases ECONOMIST Economics, Business administration Good team player Data analysis skills VisualBasic, MatLab English Tied insurance agents - natural persons 182 COMMUNICATION AND NEW CHANNELS Specialised in customer relations models Tied insurance agents - legal entities 324 Marketing, Economics and Advertising Analytical skills Initiative Insurers branches 15.78% SPECIALIST IN BIG DATA Mathematics/ Statistics Proficient in SQL and tools such as HADOOP and HIVE Bancassurance 38.65% Exclusive bancassurance operators 36 Tied bancassurance operators 14 INSURANCE CHANNELS MARKET SHARE Brokers 17.10% Insurance brokers - natural persons 3,553 Insurance brokers - legal entities 1,503 Reassurance brokers - legal entities 62 LAWYER Law, Business administration MARKETING Marketing, Advertising, Business administration, Flexibility and good judgement English Knowledge of analytics and SEO-SEM Good team player English Source: Own calculations made by Estamos Seguros

17 Insurance is not the most important activity in an economy. It does not employ the most people. Nor does it have the highest turnover. It is not the most enjoyable or the one preferred by influencers. However, without insurance none of these other revenue-rich, employment-generating or influential activities would be the same. The fact that their full potential can be developed is due to the insurance industry. The sole aim of this publication is to draw back a veil. A veil that usually conceals the insurance sector, making it invisible to many of us. In part, this is the way it should be; insurance is usually only needed in situations that are unpleasant for all concerned. However, it also fair to dedicate a few minutes to this activity because in silence, and seemingly irrelevance, insurance is responsible for rebuilding what has collapsed, and in doing so, is a provider of confidence. You do not have to be an expert in economics to see that development depends on confidence. People who are more confident bear more risk, and those that risk more, grow more. In the end, we all grow; and our well being and quality of life improve. Here lies the essence of the insurance activity; because if there were no insurance, people who now barely think twice before risking something would think three, four, ten or twenty times; and then would perhaps decide not to make a move. These pages contain a description of some of the things that insurance does each day, each hour, each minute, to ensure that neither society nor the economy lose the confidence they need to progress. If you can spare the time to read this document, I believe that you will learn some facts that you were not aware of. Facts that will surprise you. Thank you for reading. Pilar González de Frutos President of UNESPA. 26