8 Types of Insurance You Should Consider
The insurance sector has become a big business over the past few years. The recognition of the expansion of this segment is remarkable, since it also contributes significantly to the economy - having an enormous impact on how companies evolve, consume, and the world moves forward.
In a global context, the global insurance market could reach US$ 7 trillion in 2022 in nominal terms, according to the latest Sigma study from the Swiss Re Institute, published last Wednesday (13/07/22).
However, at the national level, this same study indicates that Brazil is in 17th place in the world ranking, this is due to the combination of a sharply decelerating global economy and a high global inflation of several decades.
In addition, the various types of insurance that exist actively contribute to a nation's GDP and, although it may be something that not everyone understands, they are crucial for safeguarding an individual's wealth.
We can see, in practice, how this industry supports us at crucial moments, protecting us from unexpected costs, such as medical expenses and unexpected events.
That said, in this article we will show the growth of the sector, its importance in our lives and its possibilities of application in our daily lives.
The growth of the insurance sector
Compared to recent years, something has changed in the most diverse markets and with the insurance sector it would not be different. We are talking about a long period immersed in a global pandemic, but with current doses and moments of hope.
The insurance universe has been against the impacts that this situation had on the economy, because, even if there was a reduction in income, high unemployment rates, an increase in inflation and even a reduction in GDP, the sector has managed to prosper.
Evidently, these conditions impacted the market, but it was through them and the insurers' ability to adapt that a”boom” in this industry.
In a social context, the pandemic scenario showed how vulnerable we are and highlighted the feeling of need for protection in all aspects. Thus, making the target audience in this sector more judicious and analytical, a range of service possibilities and new startups were created.
In many ways, insurance companies contribute to the strength and vitality of the economy, an example being innovation-driven revenues that are ready to increase traditional revenues across many product lines.
To better understand this economic importance, it is necessary to understand what Insurance market in Brazil. According to research, conducted in February 2022, by Susep (Superintendence of Private Insurance), the sector is growing and raised around R$52.78 billion in the first two months of this year.
In general terms, according to Accenture research, Innovate for resilience and new insurance revenues, Will the global insurance industry grow US$ 1.4 trillion between 2020 and 2025.
Despite persistent concerns about the current scenario, most insurers expect a significant increase this year. This optimism is due to the accelerated recovery of the sector and the implementation of digital technology. According to a study conducted by Deloitte Insights insurance demand is hot and is expected to continue to increase worldwide.
Some challenges exist in this sector, ranging from economic obstacles to social behavior, and to reduce these issues, insurers need to innovate. This movement was conducive to the emergence of a great demand for Insurtechs - insurance startups, which focus on simplifying automation processes, on providing personalized services, and especially on leading to a better customer experience.
A bit about Insurtechs...
In order to captivate and attract customers, most Insurtechs work by connecting insurance companies, technology, and consumers through digital platforms, such as websites and apps. Normally, these startups use artificial intelligence and machine learning, through innovation for small and medium-sized businesses, to improve your rapprochement with the public.
On the national scene, according to Statista research, Brazil has been realizing and recognizing the advantages of including them in the transformation of the sector. This is noticeable through the Increase of over 400% of InsurTech startups in the country over the last decade, in this way it is also possible to say that Brazil It houses the majority of insurtech companies from Latin America.
In short, with the large financial turnover made by Insurtechs The national market recognizes the potential of the Brazilian insurance industry and this contributes to the increase in investors in the sector and in the possibilities for market growth.
Types of insurance you need to know
The insurance industry encompasses several aspects that affect modern life, from material loss, death and disability, to unemployment, and even related to natural disasters. You must have met someone who needed this resource at some point in their life.
The support provided when using this type of service makes the sector very important in the daily life of society, since it is through it that individuals are protected in times of crisis and adversity. Understanding this market allows us to have more security, so here are some types of insurance that you need to know (or learn more):
- Health insurance:
This type of insurance encompasses expected and unexpected health expenses and is made through a contract between insurance companies and insured persons with a full or partial cost agreement.
In addition to covering expenses, it usually includes visits, medications, emergency stays, and even surgeries, which in other cases would bring a high debt to those involved.
- Car insurance:
According to current laws, this type of insurance is mandatory for all drivers, as it provides support for the vehicle and allows it to be protected against collisions, accidents, theft in general, and even vandalism.
The insurance is intended to protect cars, trucks, motorcycles, and other vehicles against physical harm or injury that may result from driving, whether an accident or not.
- Life Insurance:
This type of insurance is intended to alleviate financial costs left to the deceased individual's survivors and dependents. Death can be expensive when there is no planning for it, as there are funeral costs and additional costs.
In the event of death, there is a life policy that pays a previously agreed amount to the beneficiary. Therefore, the expenses left by the deceased are covered and there will be no debts left for the family members.
- Home Insurance:
So that you have control against possible damages, this insurance allows you to maintain the value of the property and even major damage, such as a fire.
Home insurance covers the home and extends to any structures associated with it.
- Umbrella insurance:
This insurance allows you to have more coverage, in addition to other types of insurance that you have contracted. It's basically extra civil liability coverage, made exclusively for people who have other policies and that will help protect you even more.
- Renters insurance:
This type of insurance is specific to renters, as it is used by renters to cover their properties when they rent. Therefore, it is insurance that covers personal property in the event of damage or theft and that is not the responsibility of the landlord.
7. Travel insurance:
When planning a trip you need to make sure of several things, but there is no way to be sure that there will be no unforeseen events. Therefore, in addition to the tickets and the suitcase, you need to have medical coverage or coverage for incidents.
This type of insurance is intended for travelers, as it provides assistance in case of Cancelled flights, lost luggage, accidents, etc.
- Pet safe:
Maybe you've never heard of this type of insurance, but you've had to take your pet to the vet and had to bear unforeseen costs. Therefore, this insurance provides pet owners with security in these cases.
The insurance withholds a fixed amount from your monthly budget for possible expenses. If the animal needs a veterinary emergency or even routine visits, the policy will cover it.
How can Clicksign help disrupt this market?
Clicksign is the pioneer in online document signing in Brazil and works by simplifying processes and bringing digital transformation to everyone. Just like the Insurtechs, the focus is on providing the best possible experience to its users.
With our solutions, an insurance company will save unnecessary expenses with printed documents - eliminating a large variable expense from its budget - and will improve the buying journey of its customers, since our subscriptions can be made 24 hours a day and with just one click and a considerable competitive advantage is obtained compared to its competitors.
So that you can better understand the use of our solutions, here is a Clicksign's success story in partnership with Porto Seguro.
Now that you know the types of insurance available in the market and understand the importance of the sector's growth, you may want to know a little more about our solutions.
Therefore, if you want to digitize your processes, as the main companies in the market do, in an applicable and legally valid manner, don't waste time and discover our Plans and Pricing.
