life insurance has always been brimming not exactly risk-taking before. But the last remnant of them now threatens even the proposed new Solvency II rules drive off. After a botched test run beats the industry association GDV alarm. He fears that Pension products now no longer be offered. So threatens the death of the endowment life insurance?
Insurers complain that too many risks "massively overvalued, and thus more expensive products are groundless." You see, for example, do not see why suddenly for a loan with good credit quality AA four times as much equity has to be stored as the previous test. Solvency II in its current expression would also "clear incentives to invest in short-term investments and to avoid long-term". This runs the risk that the German insurer fails with investments amounting to € 1.2 billion as long-term investors could.
leads Indeed Solvency II to absurd results: Typical long-term assets such as property and shares must be a multiple lined with expensive capital as strong as government bonds - whether from Germany or Greece. This straight life insurance policies with terms of up to 50 years would be well positioned to take advantage of the long-term benefits of stocks and real estate and simply wait out short-term fluctuations. But Solvency II forces most insurers to put more massive than currently already on interest papers - particularly where the insurance industry begins to finally expand their property portfolio and its ridiculously low equity share of 3.2 percent slightly increase.
already put nearly 90 percent of insured deposits in interest rate products. One wonders face of the Mini returns and the threat of losses, which causes a rise in interest rates on longer-term bonds, whether life insurance-savvy investors do not drive much better when their funds in the future to create the same continuously processed in long-dated bonds and are easy to make - the saving them significant cost and keep them from mis-speculations. When you buy Federal securities with the Federal Securities Administration and deposit, incurring no expenses. This provides them with ten-year bonds are currently almost 3.5 percent guaranteed return - twice as much as 1.75 percent, will in future apply to government plans as a minimum rate of newly issued life insurance policies. And insurance partners will then take just a cheap term life insurance.
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