Life Insurance Industry Under Pressure

Businessn.a. ♦ Published: October 24, 2013; 21:26 ♦ (Vindobona)

For the insurance industry, life insurance products become less and less profitable.

Life Insurance Industry Under Pressure / Picture: © Life Insurance

Above all, the average yield is too low for customers. At the moment, the average yield only ranges between 2.0% and 2.5%. Taking transaction costs and inflation into account, most insured do not earn anything.

In Germany, the insurance industry faces losses in the long term. According to Moody´s analysts Benjamin Serra and Simon Harris, the traditionally high guaranteed…