The transparency of solvency reports is comparatively high in Germany.
(Photo: dpa)
Frankfurt Rising interest rates ensure that many life insurers are financially better positioned again. It is now much easier for them to meet the capital requirements and profit expectations are also improving.
The dramatic situation of the past few years has eased for many insurers, stressed the analyst Carsten Zielke and the consumer advocates from the Association of Insured (BdV) after their annual analysis of the solvency reports. But there are still big differences.
Her conclusion on the 78 life insurers examined is that consumers should take a close look at their provider. The picture is mixed, especially in the case of the so-called run-off companies.
These processing platforms take over life insurance portfolios from other providers and continue them – apparently sometimes better, sometimes worse. In addition, the authors of the study criticize that the transparency of some solvency reports has again decreased.
Top jobs of the day
Find the best jobs now and
be notified by email.
Life insurers have had to publish their solvency reports since May 2017. These provide information as to whether the company has sufficient capital to survive extreme events such as natural disasters or financial market crises.
An important key figure here is the solvency ratio, which indicates the ratio of existing to required own funds and which insurers must keep above 100 percent on a permanent basis. Bafin insurance supervisor Frank Grund recently noted that all providers are now skipping this mark.
Consumer advocates only see difficulties with 13 life insurers
The BdV also emphasizes that the solvency situation improved for almost all life insurers in 2021. The consumer advocates therefore only see difficulties in 13 companies instead of 23 in the previous year – namely when they have negative profit expectations and low capital resources. According to the study, this is the case, for example, with Landeslebenhilfe, Frankfurt Münchener Leben and PB Leben.
>> Read here: Only a third of the largest German life insurers are economically strong
It is also striking that there are several run-off companies among the life insurers where the BdV still sees problems. This is remarkable in that inventory sales are currently picking up speed again.
Axa Leben and Zurich Deutscher Herold announced this year that they would hand over life insurance portfolios to liquidators. However, these are not bad per se, says the BdV. But the differences between the individual houses are large.
The consumer advocates positively emphasize the transparency of the German solvency reports. In a European comparison, these are at a high level. Analyst Zielke assesses, among other things, the significance and the level of detail of the risk section.
But there are also negative developments, complains Axel Kleinlein, an actuary and former BdV board spokesman. “Big market players like Allianz have now opted for less transparent reports,” he observes. Germany has therefore been overtaken by Spain as the most transparent market in Europe.
Specifically, Zielke is bothered by the fact that Allianz Leben no longer gives any details on the insurance risks. The company only writes that the risks are not significant. Allianz Leben, on the other hand, emphasizes that the solvency report was drawn up on the basis of the guidelines of the European Union and enables a deeper insight into how the company deals with its risks. Axa Leben, on the other hand, describes Zielke as a model candidate, and he praises DEVK for its very good risk section.
More: Only a third of the largest German life insurers are economically strong