For the first time in the 16-year existence of life insurance, the investments of citizens in 2021 have exceeded 2 billion denars (32.5 million euros).

It is worth noting that last year the number of people with life insurance increased by 95 percent compared to 2020. To a significant extent, this increase comes as a result of linking newly issued bank loans with life insurance, data show official of the Insurance Supervision Agency (AMS).

The total investments of citizens in life insurance last year exceeded 2 billion denars (32.5 million euros).

According to official data from the Insurance Supervision Agency (AMS), this is the record or highest annual level of life insurance investments since the establishment of the life insurance market in 2005.

By the end of 2021, over 260,000 citizens have life insurance policies.

The number of new insured persons last year increased by 127,000 persons, ie 95% compared to the number of persons who had life insurance in 2020.

Investments in life insurance last year increased by 261 million denars (4.2 million euros) compared to 2020.

Of the total investments in life insurance last year, over 1.6 billion denars (26 million euros) were invested in classic life insurance which includes: risk insurance and insurance with savings components.

In the case of risk insurance, the life of the insured is insured and in case of death, the sum insured is paid to the family member, spouse or other insurance beneficiary.

In this type of insurance, if the risk does not occur until the expiration of the insurance contract, all invested funds are held by the insurance company.

At the end of 2021, almost 200 thousand citizens have risk insurance.

Most investments are made in providing savings components.

This product enables the insured to receive his investment as interest savings after the expiration of the insurance contract.

Over 50,000 insured persons have such life insurance and 1.27 billion denars (over 20 million euros) have been invested in this product this year.

Investments in life insurance in which the investment risk is carried by the insured (known as unit link product) last year amounted to 383.2 million denars (over 6 million euros).

This is 27 percent more than in 2020. In this class, money is invested in investment funds, whose market prices depend on movements in regional and global capital markets.

Precisely because of the risk posed by these high quality investments, the number of terminated contracts is higher than the number of terminated savings component insurance contracts.

They point out that the five life insurance companies in 2021 have paid a total of 595 million denars / 9.7 million euros to their insurers for survival, termination of contracts or on the basis of risk of death.