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.

7. TARGO Leben
1,37%

8. AXA Leben
1,14%

9. Ideal Leben
1,05%

11. LVM Leben
0,95%

18. HELVETIA Leben
0,74%

21. R + V Leben AG
0,67%

22. Generali Leben
0,65%

24. VPV Leben AG
0,64%

26. Debeka Leben
0,62%

27. neue leben
0,55%

29. HDI Leben
0,51%

30. Gothaer Leben
0,50%

31. ERGO Leben
0,50%

33. Itzehoer Leben
0,43%

35. INTER Leben
0,39%

36. Barmenia Leben
0,38%

37. Allianz Leben
0,37%

40. Swiss Life
0,27%

42. PB Leben
0,25%

43. SAARLAND Leben
0,25%

44. WWK Leben
0,12%

45. DEVK Leben
0,11%

48. Condor Leben
0,05%

49. Basler Leben
0,04%

54. IDUNA Leben
-0,16%

55. RheinLand Leben
-0,20%

57. myLife Leben
-1,03%

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