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2 3

2016

EstamosSegurosReport

The full version

of this report

can be found on

www.unespa.es

or

www.estamos-seguros.es

UNESPA. Insurance Business Association Nuñez de Balboa, 101. 28006 Madrid

Telephone 91 745 15 30

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The best analysis of the insurance activity in Spain during 2016

INDEX

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01. INSURANCE ID

02. INSURANCE AND ITS CONTRIBUTION TO THE PUBLIC FINANCES

03. INSURANCE AND THE SPANISH PEOPLE

04. LIFE INSURANCE

05. MOTOR INSURANCE

06. HEALTH INSURANCE

07. PROPERTY INSURANCE

08. BURIAL SERVICES INSURANCE

09. PET INSURANCE

10. TRAVEL INSURANCE

11. INSURANCE AND ITS PROVIDERS

12. INSURANCE AND ITS EMPLOYEES

13. INSURANCE AND ITS DISTRIBUTION

LETTER FROM THE PRESIDENT

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Major traffic accidents

CLAIMS/HOUR: 81PAYMENTS/HOUR: 301,260 €

MADRID

BARCELONA

Freightaccidents CLAIMS/HOUR: 6PAYMENTS/HOUR: 24,526 €

Assistance servicesCLAIMS/HOUR: 233

PAYMENTS/HOUR: 43,627 €

Minor traffic accidents


Small businesses and manufacturers problems CLAIMS/HOUR: 280PAYMENTS/HOUR: 227,788 €

Car theft CLAIMS/HOUR: 14

PAYMENTS/HOUR: 13,404 €

Other problems related to vehiclesCLAIMS/HOUR: 474PAYMENTS/HOUR: 113,058 €

Legal services and compensations


Death related life insurance benefitsCLAIMS/HOUR: 5PAYMENTS/HOUR: 134,571 €

Credit and suretyship claims


Personal accidents unrelated to trafficCLAIMS/HOUR: 23PAYMENTS/HOUR: 35,573 €

Medical actions and compensations

CLAIMS/HOUR: 3,415PAYMENTS/HOUR: 684,305 €

Burialcompensations


Propertyrelated problemsCLAIMS/HOUR: 807PAYMENTS/HOUR: 291,361 €

Claims resulting in pecuniary losses CLAIMS/HOUR: 10PAYMENTS/HOUR: 8,608 €

Benefits paid to savers by their life insurance 1,362,726 €

01.INSURANCE ID

The task of insurance is to solve problems. Clients experience them, and their insur-ance compensates for them or resolves them by providing a service. In a year,

there are over 50 million claims of this type; all of

them claiming payments equivalent to the yearly salary of 1.2 million workers. Insurance does not rest, never stops, nor do the mishaps suffered by their clients.

LISTED BELOW ARE THE PROBLEMS SOLVED BY INSURANCE DURING THE TIME IT TAKES TO FLY BETWEEN MADRID AND BARCELONA.

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TAXES PAID AND COLLECTED BY INSURANCEUNDERTAKINGS

PENSIONS EDUCATION

INFRASTRUCTURE HEALTH SERVICES

7,087,385,523 €

Taxon profits PAID: 1,423,196,919 €COLLECTED: 444,737,287 €

Tax associated withemployment(Social Security)PAID: 486,376,072 €COLLECTED: 1,221,911,519 €

Tax on productsand servicesPAID: 1,206,702,898 €COLLECTED: 2,253,117,402 €

PropertytaxPAID: 40,805,616 €COLLECTED: 10,537,809 €

02.INSURANCE AND ITS CONTRIBUTION TO PUBLIC FINANCES

One of the determining factors in the importance of the insurance activity is the role of insurance companies as tax payers and tax collectors. During

2016, through their insurance operations, bene-fits, claims and operating costs, insurance com-

panies paid out 3.16 billion euros and collected a further 3.93 billion euros on behalf of the Span-ish Revenue Service. As a result, the existence of insurance guarantees a daily State expenditure of 20 million euros.

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DISTRIBUTION OF INSURANCE BY TYPE OF HOUSEHOLD

DISTRIBUTION OF INSURANCE IN HOUSEHOLDSBY AUTONOMOUS REGIONS

29.00%

65.79%

53.33%

64.09%

76.79%

91.00%

94.35%

95.15%

88.39%

74.06%

93.84%

14.00%

17.55%

10.37%

23.44%

19.91%

26.09%

33.01%

32.98%

31.73%

25.62%

33.78%

58.67%

29.51%

6.67%

27.43%

58.76%

41.38%

36.06%

39.03%

32.29%

59.21%

61.88%

3.96%

4.30%

0.74%

4.49%

5.36%

8.01%

8.66%

8.10%

9.92%

9.75%

12.83%

MOTOR HOME HEALTH BURIAL SERV. 3RD PARTY LIAB.

80.11% 75.42% 26.71% 50.22% 8.54%Spain

Rate of penetrationof different types ofinsurance in households

AndalusiaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

80.00%

66.89%

27.71%

64.91%

12.66%CanaryIslandsMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

77.34%

61.42%

37.08%

64.89%

13.39%

CataloniaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

78.78%

77.89%

37.25%

42.28%

2.69%

MadridMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

79.01%

80.66%

37.82%

44.92%

6.36%

La RiojaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

79.65%

79.92%

25.51%

37.58%

14.11%

CeutaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

75.83%

50.00%

34.17%

52.50%

15.83%

MelillaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

75.19%

45.74%

24.81%

31.01%

0.00%

MurciaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

85.46%

77.52%

25.73%

62.53%

5.70%

NavarreMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

78.85%

83.29%

13.84%

30.42%

7.70%

Basque CountryMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

79.75%

90.23%

32.76%

48.65%

11.79%

Communityof Valencia MOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

79.57%

76.32%

12.48%

49.22%

1.57%

ExtremaduraMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

86.91%

77.04%

41.39%

74.12%

28.00%

GaliciaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

80.62%

64.02%

17.69%

50.81%

6.75%

Castilla-La ManchaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

84.74%

68.82%

27.28%

58.96%

14.34%

CantabriaMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

77.60%

82.68%

21.74%

45.05%

4.04%

Castilla and LeonMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

78.94%

78.87%

14.54%

38.72%

5.50%

AragonMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

76.66%

75.83%

15.66%

31.02%

2.18%

AsturiasMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

76.80%

77.60%

13.26%

5.94%

4.80%

Balearic IslandsMOTOR:

HOME:

HEALTH:

BURIAL SERV.:

3RD PARTY LIAB.:

85.13%

65.51%

40.00%

39.74%

5.64%

66.82%

63.47%

32.59%

57.61%

80.43%

76.54%

78.42%

83.91%

64.59%

72.72%

81.98%

HEALTH BURIAL SERVICES THIRD PARTYLIABILITY

MOTOR HOME

Single personover 65

Single personbetween 30 and 64

Single personunder 30

One adultwith childrenunder 16

Couple, at leastone 65 or over,without children

Couple,both under 65,without children

Couplewith one childunder 16

Couplewith two childrenunder 16

Couple with oneor more childrenunder 16

Single parentwith one or morechildren under 16

Couple with oneor more childrenunder 16

03.INSURANCE AND THE SPANISH PEOPLE

Insurance is everywhere. Everyone uses it. The number of Spanish households with no insur-ance accounts for less than 5% of the total. The most commonly used insurance contracts ex-

tend to between 40% and 90% of all households, regardless of their characteristics such as the

number of family members, their socio-econom-ic level or place of residence. The level of insur-ance penetration is the best evidence of how much Spanish society values the capacity to provide ef-fective solutions and efficient protection against risk.

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NUMBER OF INDIVIDUALS WITH LIFE INSURANCEBY AUTONOMOUS REGION:

MANAGEMENT OF SAVINGSSavings managed by life insurers on behalf of clients.

NUMBER OF DEATHS COMPENSATED BY LIFE INSURANCEPercentages of deaths compensated by life insurance when compared with total number of deaths, by age.

Autonomous region Estimated No. ofinsured people

Other saving tools(CAPITAL, SIALP AND

UNIT LINKED INSURANCE)

Saving toolsfor retirement

(ANNUITIES, PPA, PIAS, ASSET TRANSFERAND PENSION FUNDS INSURANCE)

Andalusia

Madrid

Catalonia

Community of Valencia

Galicia

Castilla and Leon

Basque Country

Castilla-La Mancha

Canary Islands

Murcia

Extremadura

Asturias

Aragon

Balearic Islands

Cantabria

Navarre

La Rioja

Melilla

Ceuta

4,046,030

2,322,518

2,271,069

2,046,902

1,624,291

1,602,240

1,227,406

992,213

848,894

698,225

628,402

602,678

496,106

466,708

382,186

316,038

191,093

25,724

11,024

Up to 30 years 31 to 40 years 41 to 50 years 51 to 60 years 61 to 70 years 71 to 80 years 81 to 90 years 91 to 100 years Over 100 years All ages

4.96% 30.34% 28.25% 26.60% 15.00% 7.95% 9.61% 11.15% 19.47% 11.94%

Total

212.5BILLION EUROS

63.1BILLION EUROS

149.4BILLION EUROS

04.LIFE INSURANCE

Life insurance has a dual purpose: on the one hand, it prevents the financial consequences of death or disability by means of compensa-tion. On the other, it builds up a saving pot

on which clients can accumulate money for the fu-

ture, usually with a view to their retirement. This saving formula has convinced over 20 million Spanish people, who have entrusted their insurers with more than 210 billion euros.

LIFE INSURANCE GUARANTEES STABILITY FOR THE FUTURE, REGARDLESS OF WHAT MAY HAPPEN.

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Commitment to victims

550MILLION EUROSPAID OUT FORMEDICAL ASSISTANCEEXPENSES ARISINGFROM TRAFFIC ACCIDENTS.

Travelassistance16,062,331 CLIENTS

Theft16,577,354 CLIENTS

Drivingban

9,901,664 CLIENTS

Third partyliability

29,107,481 CLIENTS

Fire15,491,219 CLIENTS

Windows andwindscreens

22,021,865 CLIENTS

Legalexpenses 24,523,724 CLIENTS

Owndamages 8,221,217 CLIENTS

WE COVER EVERYTHINGMaterial or personal damages, as well as those to whom the damage is caused, whether it is the insured person or not.

WE ARE EVERYWHEREEstimated number of claims per year and per autonomous region.

Andalusia1,875,604

CanaryIslands393,828

Catalonia1,192,909

Madrid3,011,216

La Rioja59,393

Ceuta11,303

Melilla13,438

Murcia220,279

Navarre124,704

Basque Country353,780

Communityof Valencia896,151

Extremadura272,480

Galicia527,711

Castilla-La Mancha537,650

Cantabria122,421

Castilla and Leon584,436

Aragon260,489

Asturias213,229

BalearicIslands173,617

05.MOTOR INSURANCE

Essentially, motor insurance is a compul-sory protection against any damages that may be caused when using a motor vehi-cle. However, in reality, it is a great deal

more. Motor insurance is a complex world of services provided for each and every one of the

claims that may occur to the vehicles, as well to those travelling in them, and to pedestrians and cyclists. Every year there are 11 million claims set-tled by one of the most efficient service platforms in the Spanish economy.

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PEOPLE PROTECTED BY HEALTH INSURANCE

2016 HEALTH INSURANCE PAYMENTS

Mutual insurancefor civil servants1,463,659,441 €

Private health care insurance 3,700,264,973 €

Reimbursement of expenses 465,180,144 €

Subsidies and compensations 123,221,310 €

Private insurance

+Mutual insurance for civil servants

+Reimbursement of expenses

+Subsidies and compensations

=11,114,531

No. of people protected

06.HEALTH INSURANCE

OOver 20% of the Spanish population have health insurance, and around 8% of Spanish people also have a dental health policy. Health insurance deals

with the medical needs of clients, as well as finan-

cial benefits arising from illness or hospitalisa-tion. As a whole, this represents a world of care that spends 5.7 billion euros on the wellbeing of their clients.

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CLAIMS SOLVED BY HOME INSURANCE

NUMBER OF REPAIRED LEAKAGES IN PROPERTIESBY AUTONOMOUS COMMUNITY

Catalonia349,584

Madrid461,195

Andalusia354,816

Community of Valencia227,568

Galicia102,099

Canary Islands82,409

Murcia53,152

Asturias47,613

Balearic Islands41,302

Navarre17,881

Melilla3,345

Castilla and Leon113,539

Basque Country101,127

Castilla-La Mancha79,605

Aragon49,532

Extremadura42,944

Cantabria36,279

La Rioja11,904

Ceuta2,677

Third partyliability

180,289

Water damage2,286,598

Theft or damagecaused by theft

382,486Fire & Arson

145,619

Atmosphericphenomena454,338

Legal expenses12,819

Glass breakages1,248,423

Electrical damage677,775

Assistanceservices1,131,962

07.PROPERTY INSURANCE

Multi-risk insurance policies are con-tracts fully established in Spain reaching, for example, 75% of exist-ing dwellings. They encompass a wide

range of risk protection, from compensation for theft to the repair of the numerous breakdowns

that take place in a property. In addition to households, property insurance provides a ser-vice to whole neighbourhood communities, busi-nesses, industries and other establishments such as hotels or schools. They offer all of them a com-prehensive protection.

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AVERAGE COST OF PETINSURANCE BENEFITS

Dead bodyhandling114.23 €

Legalexpenses

65.16 €

Other26.19 €

Veterinarybenefit915.85 €

Third partyliability17,248.75 €

ROLE OF INSURANCE IN BURIAL SERVICESOCCURRING IN SPAIN

2012 2013

2015 2014

2016

Burial servicescovered by insurance231,280

Other burial services159,139

Insured burial services*59.20%







Burial servicescovered by insurance 243,122

Other burial services**159,315

Insured burial services* 60.40%




(*) Insured burial services (% of the total). (**) Estimated number of burial services.

08.BURIAL SERVICES INSURANCE

09.PET INSURANCE

Burial services insurance is the oldest mass insurance in Spain. It has been marketed for one and a half centuries and today it covers nearly half of the

Spanish population. This type of insurance has evolved to become a robust service platform

which implements its activity at the most diffi-cult time for people, providing them with a com-prehensive solution to their problems. Six out of every ten burial services in Spain are covered by death insurance.

Pet insurance is increasingly earning a role amongst the most usually risk protection coverage by individuals in Spain. Whilst not yet fully known, this is another type

of insurance evolving rapidly to an in-kind phi-losophy. Nowadays, insurance constitutes an

overall supply that answers all pet needs, from those compulsory required by law such as third party liability, to the veterinary assistance that will guarantee a healthy life to the animal. In ad-dition to pet insurance coverage for livestock is also available.

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AVERAGE COST OF INSURANCEBY TYPE OF COVERAGE

DESTINATIONS FOR WHICH THE HIGHEST NUMBEROF TRAVEL INSURANCE COVERAGE IS PURCHASED

Frequency of insurance contracts taken

MEXICO

THAILAND

PERU

CHILE

USA

ITALY

ANDORRA

CUBA

FRANCE

EGYPT

ARGENTINA INDIABURKINA

FASO

AUSTRALIA

BRAZIL

MOZAMBIQUE

Medical assistanceAVERAGE COST: 443 €

CompensationAVERAGE COST: 446 €

RescueAVERAGE COST: 410 €

Repatriationand transfers AVERAGE COST: 765 €

10.TRAVEL INSURANCE

Most people do not ever think of travel assistance insurance, but that is be-cause they have never had any prob-lems during their journey. Those

who have had problems during a trip, and sometimes very serious problems, know very well what travel insurance is and what it is for.

This is a product that is making great strides to-wards the comprehensiveness of insurance cov-erage, offering security and service in the face of nearly all those bad experiences that may be suffered during leisure, work or any other type of travel.

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PAYMENTS MADE TO PROVIDERS OF THE MAININSURANCE LINES

PAYMENTS MADE TO CAR REPAIR SHOPSTHROUGH MOTOR INSURANCE

PAYMENTS MADE TO REPAIRERSBY MULTI-RISK INSURANCE

PAYMENTS MADE TO FUNERAL SERVICES PROVIDERSBY BURIAL SERVICES INSURANCE

ESTIMATED NUMBER OF INDIRECT JOBSCREATED BY PAYMENTS MADETO SERVICE PROVIDERS IN 2016

TRANSFERS TO FUNERAL HOMES

773,973,577 €2014

826,129,816 €2015

821,535,803 €2016

TRANSFERS

1,229,747,729 €2014

1,321,525,575 €2015

1,292,606,731 €2016

CAR REPAIRSHOPS

2014

2015

2016

3,718,814,694 €

3,494,304,506 €

3,241,811,510 €

COMPENSATIONS

2014

2015

2016

1,667,338,425 €

1,870,664,454 €

2,140,986,163 €

MEDICALASSISTANCE

2014

2015

2016

578,289,401 €

543,136,873 €

543,110,932 €

Health sector(medical insurance)

241,987Health sector

(traffic accidents)

24,336

Funeralservices

36,811Householdrepairers

57,919

Car repairshops

145,261

TOTAL

506,314

11.INSURANCE AND THEIR PROVIDERS

Insurance activity has a first and obvious bene-ficiary, their clients. However, insurance pro-viders also benefit a great deal. Since insur-ance is an in-kind providing platform, those

who deliver services on behalf of the insurance

companies assume a workload that increases their capacity to create added value and main-tain a certain standard of living. Half a million workers earn a living thanks to the provision of insurance benefits.

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HOW STABLE IS INSURANCE EMPLOYMENTCOMPARED TO OTHER SECTORS?PERCENTAGE OF TEMPORARY CONTRACTS BY SECTOR

SALARY COMPARISONS WITH OTHER SECTORSTHE AVERAGE SALARY OF AN INSURANCE EMPLOYEECAN BE FOUND AMONG THE BEST REMUNERATED PROFESSIONS

EMPLOYMENT EVOLUTION IN THE INSURANCE SECTOR

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Airservicessector payroll

2,843€Average salary

Telecom.payroll


ITpayroll


Architect. payroll


Construct.payroll


Educationpayroll


Hospitalitypayroll

914€Average salary

Insurance payroll


Agricultural sector

Mining

Manufacturing

Energy

Water

Construction

Trade

Transport

Hospitality

Telecommunications

Finance

Insurance

Real Estate

Professionals, scientists and technicians

Administrative activity

Education

Health

Artistic and recreational activities

Other services

62.73%

27.10%

20.17%

16.07%

20.09%

45.10%

21.11%

24.16%

36.94%

17.59%

5.88%

2.93%

11.68%

22.16%

26.01%

63.69%

66.84%

42.25%

22.87%

69.40%

7.14%

22.79%

16.30%

13.01%

15.83%

23.70%

28.91%

39.84%

20.60%

8.43%

4.16%

8.73%

19.70%

24.68%

72.58%

53.12%

39.60%

29.44%

MEN WOMEN

The above table does not include workers of foreign branches located in Spain.Source: ordinary wage costs per worker and by sector. Data 201. INE.

45,474

44,640 46,759

44,004

48,119

45,935

47,526

48,049

47,990

49,277

47,762

47,230

47,265

46,726

46,324

45,876

45,180

12.INSURANCE AND ITS EMPLOYEES

The insurance sector, as well as guarantee-ing the service to their clients and activi-ty to their providers, also creates quality employment for its workers. Its work-

force, stable even in years of crisis, is one of the

best paid in the Spanish economy, furthermore, with contracts among the most stable that can be found in the labour force. The insurance industry allows its employees to develop their careers ful-ly, with an enviable level of employment rights.

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DISTRIBUTION OF INSURANCE CLIENTSBASED ON THEIR INTERMEDIARY

MARKET SHARE BASED OF EACHDISTRIBUTION CHANNEL

Source: DGSFPSource: DGSFP

INSURANCECONTRACT

LifeINSURANCE AGENTS: 16.46% BANCASSURANCE: 69.29%BROKERS: 4.86%BRANCH OFFICES: 7.47%INTERNET: 0.33%OTHER CHANNELS: 1.60%

MotorINSURANCE AGENTS: 39.06%BANCASSURANCE: 5.76%BROKERS: 26.75%BRANCH OFFICES: 10.32%INTERNET: 5.56%OTHER CHANNELS: 12.56%

HomeINSURANCE AGENTS: 41.53%BANCASSURANCE: 35.35%BROKERS: 12.98%BRANCH OFFICES: 5.35%INTERNET: 0.41%OTHER CHANNELS: 4.38%

Burial servicesINSURANCE AGENTS: 68.12%BANCASSURANCE: 6.86%BROKERS: 2.17%BRANCH OFFICES: 19.76%INTERNET: 0.04%OTHER CHANNELS: 3.04%

HealthINSURANCE AGENTS: 17.81%BANCASSURANCE: 10.34%BROKERS: 10.99%BRANCH OFFICES: 58.49%INTERNET: 0.79%OTHER CHANNELS: 1.58%

Agents

SHARE

28.8%79,487

intermediaries

Bancassurance

SHARE

39.9%51

intermediaries

Brokers

SHARE

12.6%5,108

intermediaries

Insurer’sbranch offices

SHARE

13.0%

Internet

SHARE

1.7%

Other

SHARE

3.9%

13.INSURANCE AND ITS DISTRIBUTION

To be insured is an aim that can be attained in many ways. Almost no other product or service in the economy offers so many possibilities to the client at the time of

purchasing it. In addition to generating nearly 50.000 direct jobs, at least 150,000 people earn

their living selling insurance. Each category of marketer have their own individual character-istics in order to offer the consumer numerous ways of approaching insurance, learning about it and choosing the most suitable coverage.

26

The document you are now reading has been designed to provide a general view of insurance activity: of how we resolve problems and of the type of risks we cover.

Insurance is present in all our lives and, even though it is true that the best news that an insurance company can give is not having to make use of it, there are 53 million times in a year when it is necessary to think of it and use it. It is at those times that insurance comes into its own and makes available the best of its capability.

The content of this document transmits the pride of over 200,000 individuals whose objective, either as marketers or administrators, is to make the life of others easier.

To learn in more detail and depth about each of the sections and information given in the report, a fuller version can be found in www.unespa.es or www.estamos-seguros.es

Thanks to their work we are all protected. Let the information you have just read be our recognition for all their efforts and efficiency.

Pilar González de Frutos UNESPA President

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