MUNICH - A professional body advising German regulators on the insurance industry has recommended a steep cut in the guaranteed rate of interest insurers are allowed to offer on new life insurance policies from 2022.
The board of the DAV association of actuaries will recommend to cut the guaranteed rate to 0.25% from 2022, compared with 0.9% currently, it said in a statement, citing the low interest rate environment.
The guaranteed rate is a focus for consumers and a selling point for life insurers.
German regulator Bafin and the German Finance Ministry usually follow DAV's recommendations.
(Reporting by Alexander Huebner; Writing by Christoph Steitz, Editing by William Maclean)