Germany’s Finance Minister Wolfgang Schaeuble has rejected comments that his overhaul of the way insurers meet obligations to policyholders will scare off investors.
Schaeuble’s proposed bill which aims to secure the long-term health of insurers amid low interest rates, includes a cut in government-set guaranteed interest payable on policies and an obligation for struggling insurers to forgo dividend payments.
GDV Insurance Federation which represents companies including Allianz SE (ALV) and Talanx AG (TLX), says that the bill would sever insurance companies from capital markets.
“While upholding consumer interests, Schaeuble has overshot in devising a cure, threatening to choke off investment needed by the industry,” said GDV.
The insurance bill, which Schaeuble wants to become law before the summer recess, also obliges insurers to pay 90 percent of profit gleaned from risk allocations in policies, up from 75 percent.
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Europe, Wolfgang Schaeuble, GDV Insurance Federation