Allianz flags in Munich (archive picture): A maximum of 90 percent are guaranteed in future
Photo: DPA
Germany's largest life insurer Allianz Leben does not want to guarantee its customers 100 percent receipt of the premiums from next year.
In new business, Allianz Leben will only sell life and pension insurance in Germany from 2021 on, with which 60, 80 or 90 percent of the payments are guaranteed at the end of the savings phase, the German subsidiary announced to Allianz.
In view of the permanent low interest rates, the insurance giant is reacting to a taboo in the life insurance industry, which had advertised for decades with premium and interest guarantees.
"With adapted guarantees and more flexible capital investments, the chances for long-term attractive returns in times of zero and negative interest improve", it said in the message.
Lower guarantees allow higher risks
The lower the guaranteed portion of the contributions, the more Allianz can invest them in riskier but more lucrative investments such as stocks.
In the Riester pension and the company pension scheme - as prescribed - there should continue to be a 100 percent contribution guarantee.
However, Allianz is also pushing for changes to be made to these strictly regulated, state-sponsored pension products.
The Allianz pension fund, which was recently only able to offer low returns due to its strict requirements, will be closed to new customers from 2022, the insurer said.
In the company pension scheme, Allianz Leben will then only offer direct insurance or pension fund products.
Icon: The mirror
dab / dpa
