Life insurers should not ignore lower-income clients, even though they cannot afford to buy products costing several hundred euros, since this segment has a huge medium and long-term potential, said Theodor Alexandrescu, general manager of Alico, which ranks third on the life insurance market.
“We must not ignore clients who can’t afford to buy an insurance
policy of EUR300-400 per year. They need life insurance maybe more
than high income people do and are the future of the life insurance
industry because, as the economy revives, they will also recover
financially,” said Alexandrescu.
He added that the company’s 2010 strategy was to attract such
clients to whom it would sell policies covering just death and
accident risks, with insurance premiums starting from EUR1 per
month. At this price, the insured sum stands at EUR6,000.
Alexandrescu also said the company’s target on this segment are clients who can save 2% to 3% of annual income. He added that, on the medium term, Alico can reach a portfolio of 500,000 such clients. By late May, 85,000 clients had bought protection policies.