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Under pressure from the financial supervisory authority BaFin, Generali is reimbursing customers costs

Insurance tip on the topic of financial security

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BaFin is demanding that Generali...
Cost reimbursement for the customers of fonds-
to pay for tied life insurance policies.

In recent months, BaFin has been scrutinizing life insurers where the Costs for customers are too high The matter is being reviewed. According to media reports, BaFin has now requested Generali Leben to offer customers a refund of part of these costs.

Generali Life refunded Customers who are between 2021 and 2023 one unit-linked life insurance have completed, excessive costs The fees are being reduced. This will be achieved through a retroactive increase of 0.7 percent in the profit participation on fund assets. This measure will also apply to new contracts from 2024 onwards and in the coming years. Apparently, the company is reacting to pressure from BaFin, the German Federal Financial Supervisory Authority, which has deemed the fees too high. This information comes from a report in the Süddeutsche Zeitung, citing industry sources. Neither Generali nor BaFin have commented to the newspaper.

background

In May 2023, BaFin published the final version of its "Information Sheet on Conduct of Business Aspects for Capital-Forming Life Insurance Products." The aim is to reduce effective costs and excessive commissions at certain insurance companies and products, which significantly impair customer returns. Since then, the authority has examined a total of ten companies more closely. Generali is apparently among them and, according to the newspaper, is the first known company where BaFin has been able to enforce changes.

Bafin chief urges speed

However, the authority is not satisfied with the progress companies are making in reducing costs. Recently, the head of BaFin, Mark Branson, urged the industry to make further progress. "Otherwise, something like a ban on commissions or a commission benchmark that is less liberal will come into play," he was quoted as saying at the "Süddeutsche Zeitung" insurance conference. "There needs to be some movement," Branson continued. "Too many have profited too well from this for too long.".

Do you also believe that your life insurance costs are too high? We would be happy to review your policy together to identify potential savings. Take the initiative now and secure a better future!