The segment of educational annuity-type life insurance is gaining popularity in insurers' portfolios, accounting for over 10% in overall contracts sealed in 2006.
"At the level of the insurance market, this segment has a high potential and we expect it to witness steady growth," believes Bram Boon, general manager with ING Asigurari de Viata.
In 2006, the two types of educational annuity policies from ING Asigurari de Viata, traditional and unit-linked, accounted for 22.6% of the overall policies sealed by the company.
The minimum annual premium for the traditional type stands at 550 RON, while the premium for the unit-linked type amounts to 600 RON. Launched 10 years ago, this type of insurance allowed some ING beneficiaries to cash in annuities valued as high as 16,000 RON per annum.
"From our own experience, we can tell you this type of insurance has registered growth, but not by high percentages," stated Andreea Hreapca, marketing manager with Interamerican Romania. Interamerican's educational annuity policy was launched in 2001 under the name of "Comoara Ta" (Your Treasure) and generated revenues worth 705,055 euros last year.
The Interamerican policy is a life insurance policy that parents can offer their children who came of age, in form of educational annuity. With this type of policy, Interamerican targets individuals aged between 28 and 45, with incomes above 200 euros, high school and university graduates and city residents. The company offers 3 packages for this type of insurance: Standard, Optim and Extins.
In 1999, AIG Life launched a similar product for the insurance of children called Junior Extra, offering a guaranteed benefit at the time the child comes of age, plus the surplus interest existing at the respective moment, which is dependent on investment returns.
"Junior Extra policies make up 20% of AIG Life
