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Allianz raises rates on life insurance

2022-12-05T10:51:42.730Z

Life insurance is becoming a little more attractive for consumers again. Germany's largest provider is increasing its total interest rate - for the first time since the crisis year 2008.



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Allianz flags in Munich: "It was a crazy year on the capital markets"

Photo: Peter Kneffel / picture alliance / dpa

For the first time in 15 years, customers of Allianz Leben, Germany's largest life insurer, will be credited with higher interest rates next year.

The total return on the more modern "Perspective" product line, which does not provide for lifetime guarantees, will increase by 0.3 percentage points to 3.5 percent in 2023, as Allianz Deutschland AG announced.

Allianz Leben then pays 3.2 percent on the classic life and pension policies.

These classic policies now make up less than half of the portfolio of twelve million contracts.

"This is a clear signal at a time when many people want to fundamentally improve their future provision," says Katja de la Viña, CEO of Allianz Lebensversicherung.

The current interest included in each case increases to 2.6 and 2.5 percent.

The total interest rate at Allianz Leben was last increased 15 years ago: by 0.1 percent to 5.4 percent at the time.

Other life insurers who have declared their profit participation are also trending upwards again in 2023 in view of rising key interest rates.

»A crazy year«

Product and private customer board member Volker Priebe explained the step of the company with the favorable positioning in the market.

Allianz Leben benefits from the fact that a large part of its capital is now in alternative investments such as real estate, infrastructure or private equity funds.

»It was a crazy year on the capital markets.

We are taking the tailwind from rising interest rates, but we must continue to expect strong fluctuations," he told Reuters news agency.

»Times remain uncertain«.

So far, Allianz Leben has not felt any decline in demand for insurance – despite inflation and high energy prices.

Luckily, Priebe believes: »The provision for old age should not be saved«.

rai/dpa/Reuters

Source: spiegel

All business articles on 2022-12-05

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