This happens all the days: A control body makes a policy – or at least it tries. The German financial Supervisory calls on those of resistance, which you should look at the Finger.
The German Federal financial Supervisory authority (BaFin) calls on the German insurer, to Protest against the low interest rates in the Eurozone. “It’s reached a point where the market participants are very clear should make, how strong is the low interest rates threaten its business model, and thus their contribution to the funded pension,” said BaFin’s Executive Director, Frank reason, at a meeting of the Supervisory authority in Bonn.
The recent reduction of negative Deposit rates by the European Central Bank have increased the pressure on the industry once again. “So far, I have not stopped the Affected to lament, but to accept the reality,” said reason. Would’ve done the life insurers, for example, by a reduction in distributions to the Insured.
Frank Grund, Executive Director of the insurance and pension Fund supervision at the BaFin (archive image)
The low interest rates put a strain on life insurers, which are among the largest investors. Some of the serious difficulties threaten already. The overseers 20 lives, according to data from August, therefore, the insurer more precisely, the are not able to meet its obligations to the customer, perhaps in the longer term. “The Situation of life insurers and pension funds requires, in these years, that we will reinforce our control,” said reason.
The BaFin is a public-Law institution. It is under the Federal Ministry of Finance and controlled the financial system in Germany.
jj/bri (rtr, dpa)