How are premiums and overall production (especially the life industry) affected by this?
The increase in annual insurance premiums in Greece to some (perhaps significant) percentage is also due to the increase in the average age of our customers, rather than to the increase in the number of our sales!
Are you not concerned when you notice that while in recent years, we have an increase in the production of insurance premiums every year, at the same time, on the other hand, the average insurance premiums do not deviate from almost 2.5% of GDP?
Perhaps the transfer of contracts from company to company is not the only reason!
Life expectancy and average age of our customers at this timeare two very interesting pieces of information for insurers, because on this data most build sales, at least of the products in the life sector!
Given the overall decline in births on the old continent and the simultaneous increase in life expectancy, our statistics show that Europe as a whole has been aging for the past 60 years (after the baby boom of the 60s).
Thus, the average age of the inhabitants of Europe has increased!
The bad thing is that our statistical data show that the indicators specific to Greece are higher than the European average!
Very interesting is the evolution of the average age of Greeks during the 60s, 70s, 80s, 90s up to the present day, because this shows us the evolution and change in the needs of our clientele and insurance premiums who pay for their coverage!
Let’s look in detail at how we arrived in Greece, from the average age of 29 years in the 60s, to today’s average age of 46. according to United Nations (UN) figures.
(Source of data: UN World Population Prospects)
With an average age in Greece today at 46 years oldwe are behind only Germany, Spain and Portugal, which have an average age of 47 years and the “champion” Italy, with an average age of 49 years!
The average age of our customers is increasing and we must redesign our sales and our corresponding training, after of course taking into account the corresponding increasing the life expectancy of our customers!
These especially affect the sales and premiums of life and health products!
Tracking modern statistical data is very interesting and useful for insurers, for their training and sales!
Who is Kostas Papaioannou?
He is a certified instructor of insurance subjects, with many years of educational experience.
He has written the books “Investments and Insurance”, Spyros Publications 2021, which concerns the certifications of the Bank of Greece in Unit Linked products and “Insurance Agents”, Spyros Publications 2022, which concerns the mandatory knowledge and knowledge certifications of insurance intermediaries, by the Bank Greece’s. He has also participated in the writing of EIAS and ETI books. He is a columnist for Next Deal.
He collaborates as a specialist scientist, for research and teaching purposes, with the National and Kapodistrian University of Athens (EKPA) and teaches in the MBA Banking and Insurance Administration, as well as in other graduate programs of EKPA. In addition, he cooperates and teaches at EIAS and ETI (Hellenic Banking Institute – EET), as well as other educational institutions.
He has studied economics and postgraduate studies in insurance. He has worked in training management positions in some of the largest insurance companies and banks active in the Greek market.
