The Cypriot consumer is gaining confidence in life insurance, according to a survey conducted by RAI Consultants in March of this year, and sponsored by StockWatch.
The reliability rating of eight companies in the life insurance sector, according to the consumers surveyed, rose to 5.69 in March 2020 from 5.56 in the survey taken in the previous year (in which 10 companies were surveyed).
“The index captures consumers’ perceptions of the big companies in the life industry, based on the answers they give to two questions – how reliable the insurance company is and whether it would be recommended to third parties,” StockWatch writes. The data was collected between March 9-13, 2020.
The sample size was 600 people. The coverage was pan-Cypriot, urban and rural areas, men and women aged 18 and over. The data collection method was by telephone interviews from the RAI call centre.
The Nicosia-based Universal Life topped the rankings with a total score of 6.4 out of 10 in terms of reliability. It also got top scores for recommendations. Universal Life has led the survey for eight years in a row.
“The outcome of the market survey is a confirmation of Universal Life’s leading position in the local insurance industry and in the mind of the Cypriot consumer, commented Evan Gavas, chief executive officer of Universal Life.
Next in the rankings came the Cyprus subsidiary of Eurolife, which received a score of 6.30 out of 10 in terms of reliability, and 5.8 for recommendations.
It was followed, in ranking order, by Hellenic Alico Life, CNP CypriaLife, Ethniki, Altius Life, MetLife and Prime insurance.
Life insurance is a popular investment in Cyprus. The value of gross premiums written by life insurance companies in Cyprus was at €467.84 million in 2019, according to Statista. That figure is expected to increase to €592 million in 2025.
Life insurance can replace the earnings that would cease at the death of the insured and can help the family continue to pay their necessary expenses and maintain their quality of life.
But apart from its value as protection for families if a loved one dies, life insurance lump sum payments are also exempt from income tax in Cyprus.
Life insurance can also provide a vehicle for investment with tax advantages, and at a higher yield than bank deposits earn.