High guarantees from the past are a heavy burden for life insurers.
(Photo: dpa)
Frankfurt Life insurance with a guaranteed interest rate was the favorite investment of Germans for many years. According to a study, this classic in new insurance business is now finally becoming obsolete. Of the 46 companies examined, only 21 still offer traditional life and pension insurance contracts, the Assekurata rating agency reported in its annual surplus study on Thursday.
The reason for this is the ongoing low interest rates. Since January 1, life insurers have only been able to promise a maximum interest rate of 0.25 percent on the savings portion. Previously, this “maximum technical interest rate” was 0.9 percent.
“The low supply makes it clear how much the former flagship of life insurers has fallen in favor with providers,” said Assekurata boss Reiner Will.
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