Thus, risk control is an important element in insurance investments.
In our country, policies are undoubtedly widespread however there are some product categories that are not appreciated as they deserve. This is not the case with life insurance policies, which in 2021 collected around 111 billion euros in Italy (Ivass data) with a growth of 5.9 percent compared to last year, confirming themselves as financial products that are much loved by savers.
Much less substantial, however, were the premiums earmarked by Italians in 2021 for non-life insurance, amounting to 39 billion euros (+2.9 percent year-on-year). However, if we exclude motor liability policies (which are compulsory by law for motorists), the figure for non-life premiums drops to 23 billion euros.
This is well below 2 percent of GDP, compared with 3 to 5 percent in major European countries, not to mention the United States where it is as high as 7 percent.
Yet, the risk protection provided by policies also has a very important function in protecting assets and financial wealth. Consider, for example, the important function of a death-risk policy, which insures a lump sum (even a large one) for the insured's children and heirs in the event of premature death, which can result in a very heavy loss of income for the family.
The same goes for an accident and illness or fire and burglary policy, which usually protect one of the largest components of the family's assets, namely the property owned by the family. In the case of Life Branch policies, however, there is another important element to note. The capital accumulated with policies of this type enjoys certain tax and regulatory advantages.
In fact, the accrued capital is by law seizable and unseizable by any creditors and is exempt from inheritance tax as well. For this reason, Life policies are particularly suitable for managing the generational transfer of wealth, that is, the transfer of assets between one generation of the family and the next, from parents to children to grandchildren. Finally, without forgetting that Life policies also allow for the naming of possible beneficiaries outside of the legal heirs, thus allowing for flexibility in inheritance practices.