In the current environment of low interest rates, life insurers first of all need to earn the guaranteed interest for the traditional life insurance products. If the returns on the capital markets are not sufficient, there is a risk that returns from disability and term life products will be used to finance traditional life products. Such cross-financing between different products and sources of profit is permitted under supervisory law and is also fully in line with the insurer’s collective business model. However, in this case risk products will receive less surplus participation and the premiums to be paid increase. This potentially affects term life insurances, and especially disability insurance products.

Measuring Future Stability of Disability Insurance Premiums

We disclose which life insurers are strong enough. Those probably won’t ave to reduce the surplus participation for risk products or increase premiums. To this end, we analyzed the future amount of profit participation after accounting for possible shortfalls in capital market returns. This is measured by the Technical Net Rate. The higher it is, the better. In our analysis we assumed a very tough scenario of permanently low interest rates. As a result, in particular those life insurers perform well having high technical profits on the one hand and having no holes to fill caused by low capital market returns on the other.

This is the third year that Deutsche Ärzteversicherung has topped the RealRate ranking for disability insurers. The second place was defended by the Lebensversicherung von 1871, and the third place this year went to Nürnberger Leben.

7. TARGO Leben
1.29%

11. AXA Leben
1.07%

12. Debeka Leben
1.04%

13. R + V Leben AG
1.04%

17. INTER Leben
0.93%

20. HDI Leben
0.91%

21. Ideal Leben
0.90%

22. LVM Leben
0.89%

23. Swiss Life
0.84%

24. SAARLAND Leben
0.82%

26. Condor Leben
0.81%

32. DEVK Leben
0.67%

36. Gothaer Leben
0.59%

38. PB Leben
0.48%

39. Allianz Leben
0.46%

41. neue leben
0.41%

44. VPV Leben AG
0.26%

45. Basler Leben
0.23%

49. Generali Leben
0.15%

51. Barmenia Leben
0.07%

52. IDUNA Leben
-0.28%

55. ERGO Leben
-0.48%

56. RheinLand Leben
-0.51%

57. WWK Leben
-0.53%

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