Mathias Westermann on Pixabay
If the actuaries have their way, the guaranteed interest rate for life insurance should fall from the current 0.9 to 0.5 percent. On the other hand, this could have fatal consequences for the performance of life insurers, believes Partner in Life.
Anyone who takes out private pension insurance for less than 20,000 euros should generate an annual minus of 0.35 percent on average with the new guaranteed interest rate. With larger sums there would be a minus of 0.30 percent, the company calculates for the financial newspaper Euros on Sunday in front. Background: According to the analysis, small sums are burdened with relatively higher costs and also have a lower compound interest effect.
The German Actuarial Association (DAV) had already recommended in December 2019 that the maximum actuarial interest rate in life insurance should be reduced from the current 0.9 percent to 0.5 percent by January 1, 2021. The financial supervisory authority Bafin also recommends that life insurers scrutinize the maximum discount rate for classic policies in the coming year in view of the persistently low interest rate environment.
This goes DAV boss Guido Bader assume that “with new contracts, the classic policies with an annual guarantee will become a niche product by the end of next year”. Also Norbert Rollinger, CEO of R + V Versicherung, recently argued that the industry should voluntarily lower the guaranteed interest rate well below one percent.
Author: VW editorial team
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