9/23/2024 – ÖVP, SPÖ, FPÖ, Greens, Neos: The topic of “private insurance” does not play a major role in the election manifestos. Nevertheless, there are some proposals that affect the sector – in some programs more, in others less. The range of proposals is quite broad. The spectrum ranges from the promotion of the second and third pillars to a ban on commissions.
The new composition of the National Council will be decided on Sunday (Image: Parliamentary Directorate/Thomas Topd).
On Sunday, Austria will elect a new National Council. The election manifestos – we have looked at those of the five parliamentary parties – are in some cases quite extensive.
The topic of insurance, however, is usually less present – and this is sometimes not necessarily “advantageous” for the industry, particularly in the area of life insurance. On the other hand, there are pleas for an expansion of the second and third pillars.
The issue of natural disaster insurance, on the other hand, has been pushed by the insurance industry for a long time, as is well known. This push will probably continue in the next legislative period, at least if one follows the wording of the election manifestos.
ÖVP: High level of future security, tax measures, pension fund
The ÖVP election manifesto, under the title “More wealth in the future” (p. 31/32), states, among other things, the following:
“The annual allowance for contributions to secure the future (employer expenses for insurance or pension schemes such as premium payments for life insurance) is to be increased from 300 euros to 1,200 euros per year.
We want to reduce the insurance tax on pension fund contributions from 2.5% to 1.5%.
In addition, the tax exemption is to be increased from EUR 730 to EUR 1,500. Those who provide for young people should also have the opportunity to buy safe securities in the name of children (e.g. ETF savings plans).
By introducing a pension deposit by reintroducing the holding period for securities while simultaneously strengthening the capital market and exempting withdrawals from tax, we are promoting personal provision for the standard of living of the future.”
Strengthening the second and third pillars
Explicit reference is made to the second and third pillars on page 158. It states: “While the strengthening of the second pillar is to take place, among other things, within the framework of collective agreements (company pension schemes), we want to ensure that tax-free payments are possible in order to expand and strengthen the third pillar (private pension schemes).
In future, a general pension fund contract will prevent only people whose companies have a contract with pension funds from being able to convert their severance payments into pension funds.”
On page 152, nursing care insurance is mentioned: “The tax recognition of nursing care insurance brings financial relief: Premium payments for nursing care insurance should be claimed as a tax deduction.”
There is a general comment on the topic of discrimination (p. 159/160): “We are against the introduction of compulsory driving license checks only for older people and against discrimination on the basis of age in banking and insurance matters.”
Legal protection insurance for mayors
For mayors, there is a separate point in the ÖVP programme that revolves around insurance (p. 71): “We must make the office of mayor and that of municipal representatives more attractive again by reducing administrative burdens and providing financial incentives.
This also includes the introduction of state legal protection insurance for mayors to protect them from financial burdens caused by unfair practices.”
SPÖ: Local insurance branches
The SPÖ election manifesto contains a chapter entitled “For a good life in old age” (p. 102/103). Among other things, it deals with improving local infrastructure.
“Critical infrastructure services must also be offered more locally again. These include electricity and gas providers, banks, ATMs and insurance companies, which should have branches, but also postal partners in order to shorten routes and guarantee a supply network with high service standards.”
Commitment to the pay-as-you-go system, “secure pensions”
Under the heading “Financial security in old age”, the SPÖ is committed to a “public pension system organized on a pay-as-you-go basis”. This requires age-appropriate jobs and more workplace health promotion.
And further: “The Austrian pension system is crisis-proof: pension benefits are independent of the capital market, legally established, transparent and secure the standard of living. The SPÖ emphatically rejects scaremongering and bad-mouthing (‘explosive costs’, ‘pension gap’, ‘unaffordability’).”
“Promise of the SPÖ”
In the section “Secure pensions” you can read a “promise from the SPÖ to the Austrians”: “Playing old and young off against each other in the pension debate is a nasty trick to create a mood against a solidarity-based pay-as-you-go system – and a perfidious way to pressure people into private pension provision.
The SPÖ promises: statutory pensions will not be cut, the statutory retirement age will not be increased. Access to the heavy work pension will be made easier for everyone who does heavy work.”
FPÖ: Promoting company and private pension provision
“Ensuring a decent pension” is the title of a chapter by the FPÖ in which it advocates, among other things, the “promotion of company and private pension provision” (p. 71).
“In order to encourage both employers and employees to make pension provisions that go beyond the statutory pillar, targeted tax incentives are needed: increasing the tax-free allowance for employers’ future security measures for their employees, reducing insurance tax for life insurance and pension funds, introducing a blocked and tax-free pension deposit for pension provision.”
If required, private doctor
In terms of health, the party advocates a “right to a doctor of one’s own choice if necessary” (p. 82). This means: “If treatment by a health insurance doctor is not possible within a reasonable period of time, then if treatment is urgently required, the costs of treatment by a doctor of one’s own choice should be reimbursed 100 percent by the social insurance.”
Speaking of health: Insurance premiums are mentioned in the section “Protecting our health data.” “Wearable technologies such as fitness trackers and smartwatches” continuously collect data about the health and activities of their users.
This poses the risk of misuse. “Employers could use such data to make decisions about hiring or firing. Insurance companies could charge higher premiums for people whose data indicates unhealthy behavior. There is no way around comprehensive data protection. Users must be made more aware of the dangers.”
Legal right to assistance in the event of natural disasters
With regard to natural disasters, the party advocates a “legal right to rapid assistance and financial compensation in the event of a disaster” (p. 75).
Many have fallen victim to natural disasters in recent years. “Whether it’s a landslide, flood, storm or hail: the state has a responsibility to provide rapid assistance and compensate for the damage caused. A legal right to assistance and compensation should therefore be introduced, regardless of the funding of any disaster funds or other aid pots.”
Greens: Abolish commission principle in insurance brokerage
In the Green Party’s election manifesto, the term insurance appears for the first time on page 50 in the heading “Abolish the commission principle in insurance brokerage”.
It states: “We are committed to fairness in insurance transactions and financial services – especially in life insurance. After decades of paying in, many people have a rude awakening when they receive less than they paid in due to opaque commissions and processing fees. Women in particular often use life insurance as a pension plan. Our demand to prevent such cases: strict commission restrictions and more transparency when concluding the contract.”
Invest your savings in a climate-friendly way
A demand made with regard to “transparency in the financial sector” (p. 51): “Savings for the future should be invested in climate-friendly measures instead of in fossil fuels. We are committed to ensuring that pension insurance and pension products gradually phase out the financing of coal, oil and gas. […]
Our goal is for transparent disclosure and mandatory transformation plans to achieve climate neutrality to hold the financial sector accountable – following the example of the Green Finance Alliance, the international pioneering initiative of the Federal Ministry for Climate Protection.”
Green pension model on two pillars
The chapter “Growing older without worries” presents the “Green Pension Model” (p. 91), which is based on two pillars.
“One is the basic pension, which is financed from tax money, is available to everyone over the age of 65 and protects against old-age poverty and social exclusion. The other is a supplementary pension, based on contributions paid during working life, which can go up to a maximum pension.”
Insurance for volunteers, consumer protection in the digital space
In the area of ”civil society”, the Greens support “insurance protection in voluntary service” (p. 67): “Voluntary work also entails risks: disaster operations are dangerous for the helpers, and accidents can occur in many areas of voluntary work in general. We therefore call for uniform, subsidiary insurance protection for all volunteers and in all federal states to protect them in their valuable work.”
The Greens also address consumer protection in connection with the digital space (SS 59). Among other things, it states: “Important decisions, such as those regarding the granting of loans or the conclusion of insurance contracts, must not be made by artificial intelligence alone. […]“
Neos: Strengthening company and private pension offerings
In their election manifesto, the Neos write in the chapter “Pensions” (p. 7): “To ensure that aging in dignity remains affordable for everyone in the future, we need, above all, strengthened company and private pension schemes to complement the public pension system.
The measure called for is: “Company pension provision for all – introduce share pensions with prevention credits for all employees”.
In the chapter “Health” (p. 8), the party wants “free choice of health insurance – gradually changing compulsory insurance to compulsory insurance”.
Capital market: capital gains tax, share pension, “new severance payment” new
A separate section is dedicated to the “capital market” (p. 21). Among other things, Neos has the following plans here:
- “Abolish capital gains tax on capital gains – reintroduce a speculation period of a maximum of one year and thus abolish capital gains tax on capital gains for long-term investors”
- “Entry into the equity pension – introduce a capital-funded third pillar for all employed persons, up to 3,000 euros per year should be able to be invested tax-free in an opportunity portfolio”
- “Rethinking severance pay – by reforming severance pay, employees will be able to choose their own pension fund, with a higher equity quota at the beginning of their working life, which gradually decreases until the payment date.”
