The German life insurance companies after an analysis of the Federal government of the Insured, in part, in a difficult position.
“More than a quarter of the examined companies has serious problems,” said the spokesman of the Board of the Association, Axel Kleinlein. 22 of 84 surveyed insurers have either a low ability to pay, or a negative profit expectancy. The evaluation is based on the EU-prescribed Reports in which the insurer is their financial position disclose.
At the Moment, the provider in a three times the stress of the situation would be: interest rates are low, there is uncertainty in the case of corporate bonds, and the Corona-crisis make themselves felt. “The tectonics of the life insurer is in danger,” said Kleinlein. Insurers should strengthen their capital and their investments, diversify.
In doing so, you are not likely to grab into the pockets of the Insured, – said Kleinlein. In the reserves of the insurer 100 billion euros dormant in customer deposits. Now the company and shareholders would have to provide for a capital increase. The problems, the insurer would, especially in the high guarantee interest from the ‘ 90s – where in the opinion of Kleinlein not the height is the real Problem, but the long-term costing.
The General Association of the German insurance industry, said that the solvency ratio – the ratio of available to required capital, whether in the life insurance area are adequate. By the end of 2019, the rate was far above the prescribed level. The effects of the Corona pandemic could not yet be estimated, because the effects are in opposite directions.
Association spokesman Christian Ponzel admitted that the solvency reports for the Non-experts were difficult to understand. The Association would call for two types of Reports: one for the expert public, one for the consumer. In this point, the Federal government of the Insured is already seeing progress. The Association wants to pay tribute to the transparency in the future, with a seal.
In cooperation with the consulting company Zielke Research Consult-created predicate in Gold, silver and Bronze to give customers a first orientation aid for the selection of an insurer. “The companies that are especially transparent, also tend to be those who are most likely to be willing to put up with the own problems,” said Kleinlein.
Customers should first check, however, whether you are in need of any such insurance. The Federal government of the Insured person advises against the use of such contracts. It is currently not a good idea as an investment or to Save a life insurance.
Founded in 1982, the Association has around 45,000 members and sees itself as an independent Lobby of the Insured.
