How much money do we spend on insurance? How do we share it?

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If we look at the latest data on insurance billing in Spain, these indicate that the sector is experiencing a good moment. 

These data give us a good idea in aggregate, but it may be that the increases in billing occur because more people bet on such necessary products as life insurance or eye med health insurance. To know how this expense is distributed, we must put it in context with the rest of the expenses of the family unit, something that we can see in the Family Budget Survey carried out annually by the National Institute of Statistics (INE).

How do we distribute the expense according to the type of insurance?

As its name suggests, this survey measures how Spaniards distribute their spending budget, both individually and by household, an important unit, also in insurance. This is so, because, although there are insurance products related to the individual, such as life insurance, in many others it is for the home. For example, a vehicle is usually a family or shared asset, home insurance of course, or even health insurance, in which the most normal thing is to include all family members in the policy. It is important to point out that life insurance is not included in this survey since it is considered not an expense but part of the client’s financial assets.

With these premises, these are the data for the year 2017 (last with the published survey), compared with the previous year.

In which insurance do we invest more?

Overall, it can be seen that Spaniards spend a significant amount on non-life insurance, 2,620.01 euros per household per year, a figure that has practically remained stable compared to 2016 (2,620.10 euros).

Yes, we have important changes in the distribution. Other insurances fall, including travel, assistance, or civil liability (this one only hires 1 in 10 Spanish families) with a decrease of 6.7% spending 244.35 euros per household. The second insurance that is spent the least is precisely the one that exists the most per household, that is related to vehicles (4 out of 5 households take it out). Their expenditure per household is 579.81 euros, 2.1% less.

The third that falls the most is insurance related to housing, which is contracted by 7 out of 10 households. This type of multi-risk insurance fell by 0.9% to 287.65 euros. Funeral insurance remains stable, contracted by 1 in 3 households, with barely a variation of one cent compared to the previous year (321.78 euros are spent).

But the one that does gain positions and importance among Spaniards is health insurance. It rises to 1,186.42 euros per household and represents a rise of 2.8% compared to the previous year, but its importance in the non-life insurance budget increases. It goes from 44% in 2016 to 45.3% in 2017. One in three families is already betting on this protection in a trend that, if we go back to the billing data for the first nine months of 2018, will continue to grow.

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