Many life insurers will pay their customers significantly less interest in 2021 than in previous years. With which providers the income is falling in particular.
Classic life and annuity insurances yield significantly less in the current year than in 2020 due to the permanent low interest rates. The current interest rate drops to an average of 2.04 percent, according to Reuters calculations based on the declarations of more than 50 life insurers.
Last year, the same companies paid out an average of 2.19 percent, in 2019 it was around 2.4 percent. Just under a third of the providers will keep the surplus participation on classic policies with a guaranteed interest rate constant in 2021. More and more insurers no longer offer such contracts in new business, but they still dominate the portfolio of around 82 million life insurances in Germany.
These insurers have lowered the interest rate
Numerous large providers have significantly reduced the profit sharing. R + V Lebensversicherung AG, the number two in the industry, only earns 1.75 (2020: 2.3) percent on the savings component. In 2019, she had paid 2.6 percent. The cooperative insurer announced in the autumn that it would withdraw from the sale of classic products – with the exception of the Riester pension – and in future only wants to offer life insurance policies without a full premium guarantee.
This means that he no longer has to take great account of sales when setting the interest rate. According to data from the Assekurata rating agency, Debeka is also going down steeply: from 2.25 percent in 2019 to 1.75 percent in 2020 to 1.25 percent.
The undisputed market leader Allianz Leben has also abolished 100 percent premium guarantees in new business. He will still pay 2.3 (2.5) percent on classic life insurance policies in 2021. That is half a percent less than two years ago, but is above the industry average. In addition to the current interest rate, there is also the terminal surplus and participation in the valuation reserves, which together can amount to around 0.5 percent.
This provider has raised interest rates
According to the present declarations, the highest current interest rate this year is offered by Ideal Leben and Athora Leben, each with 3.0 percent. Athora was the only provider to even increase the interest rate by 0.25 percentage points. Behind the Wiesbaden company is the former Delta Lloyd, which was the first life insurer to sell its policy portfolio to the liquidator Athora.
With Proxalto, there is also a processor at the lower end of the scale: The former Generali Leben, which was sold to inventory manager Viridium in 2019, pays 1.25 percent as in the previous year.
Old customers often have higher interest rates
A consolation for existing customers: for many policies, life insurers have to credit higher interest rates than they have declared. In the past, the guaranteed interest rate, which the provider must adhere to over the term of the contract, was usually higher than the current profit participation.
Until 2000 it was 4.0 percent. Those who took out their policy by 2006 receive at least 2.75 percent. Since 2011, life insurers have had to save the money for this in the form of the additional interest reserve (ZZR).