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The German Association of the Insured (BdV) just published a very strong statement against the inclusion of life-insurance products in PEPP[1].
"We share their analysis regarding the opacity of the life insurance sector. The so-called “capital protection” provided by the basic PEPP is highly misleading as it only covers amounts after all accumulated fees since the beginning are deducted, and does not take into account the devastating impact of inflation on the purchasing power of pension savings over time. Worse, there is no prominent warning alerting pension savers about this dramatic impact of accumulated fees and inflation over time on this so-called “protection”. Also, a key information document to compare with other alternative PEPP options would help, provided all relevant information on past performance of the product and of its benchmark and on fees is provided. We call on policy makers and on the insurance industry to address these issues", explains Guillaume Prache, Managing Director of BETTER FINANCE.
The BdV just published a stern statement on the opacity of life insurances. Additionally, the BdV will soon publish a study on the solvency situation of the German life insurance industry. "We are glad that the BdV points to critical issues in the discussions surrounding PEPP", explains Prache. The spokesman of BdV, Axel Kleinlein, adds: "The opacity of life insurance products is a threat to European consumers and to the European economy".
- The English statement of the BdV can be read here.
- The English press release of the BdV can be read here.
- To be informed about the results of the upcoming Solvency II study of the BdV and their English press releases, please register here.
[1] PEPP : Pan European Personal Pension
