70% of Sber clients renew their mortgage insurance online
Clients have extended over 1.2 million mortgage insurance policies by Sberbank subsidiaries Sberbank insurance and Sberbank life insurance since early 2021. One out of four clients extended their policy on the SberBank Online mobile app or website. The proportion of remote prolongations in 2021 rose to 70% compared to 60% in 2020 and 45% in 2019.
When taking out a mortgage, clients also sign up for real estate insurance and life and health insurance programs. Policies are renewed on an annual basis. Timely prolongation of a life insurance policy enables clients to keep the interest rate on their loan stable. Real estate insurance policies are mandatory under the loan agreement.
January-June 2021 saw a rise not only in the proportion of people preferring to renew their mortgage insurance contracts remotely, but also in the number of policies extended online: 832,000 in 2021 compared to 685,000 in 2020. Since the start of the year, clients have renewed 1.2 million mortgage insurance policies compared to 1.1 million in January-June 2020.
Insurance policies can be prolonged at SberBank branches and through online services like the DomClick.ru website or SberBank Online. In January-June 2021, 25% of remote extensions were completed on SberBank Online, 23% on DomClick.ru, and 22% through telemarketing. Users in 2021 prefer the mobile app or website: the number of policies renewed through these methods increased by one-third compared to last year.
In 2021, our clients prefer remote services: the proportion of people who renewed their mortgage insurance online increased by 10%. The number of prolongations completed on SberBank Online and DomClick.ru increased by 30% and 25%, respectively. Online services mean that you can extend a contract in a matter of minutes. When you access the service, almost all the information required is automatically uploaded and transmitted to the bank, and you receive your policy by email. Mortgage insurance policies ensure that the client is protected should an emergency occur, e.g., health issues, property damage caused by natural disasters, fire, or flooding, destruction of a building due to design or construction flaws, or, in the case of apartments, maintenance flaws.
Director of Protective Products and Services, SberbankThe cost of a mortgage insurance policy depends on the client’s outstanding mortgage balance, gender, and age. The cost of a real estate insurance policy depends on the outstanding balance and property type.