In some city archives historians find records of an annuity purchase – like these. What is behind it and what does it mean for us? Since then In the 13th century, the purchase of annuities was the predominant credit business of the Middle Ages. The future pensioner bought the right to receive a life […]
Private and occupational pension schemes: deletion of valuation reserves remains on the agenda
For more than 10 years, the yields of life insurance policies have been suffering from the low capital market interest rates. As a result, reductions of up to more than 30 % compared to the expectations raised until the turn of the millennium are the rule. However, customers with terminated or expired contracts have been […]
Every retirement plan on one leg is dangerous
Are state parliamentarians threatened with poverty in old age? Trade union pension experts complained in 2018 that members of a state parliament received 3.675% p.a. of their diets as a pension under the pension law in force until 2007, with a calculated income of EUR 8,220 after five years, i.e. EUR 1,510 as a pension. […]
Life insurers: Are premium increases due to low interest rates permissible?
Some legal experts believe that the permanent mini interest rates will allow insurance companies to reduce their guarantees or increase premiums. But this is a contentious issue. As is well known, the permanent low level of interest rates is causing considerable problems for German life insurers. However, legal experts disagree on whether companies are therefore […]
From bank(s) and casino bets
How does case law help financial institutions to pass on miscalculations? The regulations on the elimination of the basis of business in the German Civil Code (BGB) can be an approach to reorganize financial institutions in distress. For example, when building societies terminate the higher-interest deposits – sometimes with success. An insurer could terminate […]