Life insurance fees under SberStrakhovanie’s shared life insurance contracts increased threefold in the first quarter of 2024 compared to the same period last year, from 6.5 to 19.3 billion rubles. This was announced by Alexander Tikhomirov, investment director of SberLife Insurance.
Fractional life insurance is a type of long-term investment that combines life insurance with management of the client’s investments, he said. In international practice, such products are called unit-connected.
“In less than two years, Sber customers invested 120 billion rubles in joint life insurance,” Tikhomirov said.
According to him, the weighted average return on fractional life insurance products since its launch in June 2022 has been 17.32% per annum. The amount of profitability in DSZ depends on the risk level of the chosen strategy; As of April 30, 2024, the highest profitability was seen in the “Growth Impulse” strategy focused on stock investments, with 38.6%.
It was noted that the draft law on shared life insurance will come into force at the beginning of next year. Now SberLife Insurance sells life insurance products based on current legislation, whose minimum entry threshold cannot be lower than 1.5 million rubles.
Tikhomirov noted that the DSZh bill will reduce the threshold for entry into this product for private investors, as it does not regulate the amount of initial contribution. According to him, the market is now waiting for a regulatory framework from the Bank of Russia within the framework of the DSG law, and as soon as this law is adopted, SberLife Insurance will begin to change its product range to meet the new requirements.
Let us remind you that the first contract of this kind in Russia was signed with SberStrakhovanie Life Insurance in June 2022. The company now offers two products with a ready-made and individual investment strategy, including yuan-denominated assets. The minimum contribution under the agreement is 1.5 million rubles.
In addition to providing potentially high returns, such products provide targeted capital transfer and legal protection, while also allowing you to increase your income by taking advantage of tax advantages. One of the advantages of DSG is the ability to seamlessly monitor the composition, dynamics and value of the portfolio through the SberBank Online application.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.