Allianz raises interest rates on policies: signaling effect for the industry and competitive pressure for life insurance companies.

Allianz raises interest rates on policies: signaling effect for the industry and competitive pressure for life insurance companies.

How www.welt.de reports that Allianz is continuing to raise interest rates on life insurance policies after years of falling returns. This step has a signal effect for the entire industry, as life insurance, despite the promise of stability and investment advantages, is under competitive pressure from other forms of investment.

The increase in interest rates on life insurance policies shows that the market for long-term savings and investment products is in a phase of change. The rising interest rates on life insurance could lead to investors investing more in this form of retirement provision again as it becomes more attractive.

On the other hand, life insurance is still under competitive pressure from other forms of investment, such as investment funds or real estate. Comparing the returns and risks of different investment products is becoming increasingly important for investors.

The turnaround in returns at Allianz could have an impact on the entire market for long-term savings and investment products. Other insurance companies could follow Allianz's example and also increase interest rates on life insurance policies in order to become more attractive to investors.

Overall, it can be said that the turnaround in returns at Allianz can be a positive development for investors, as the attractiveness of life insurance as a long-term form of investment is increasing. However, it remains to be seen how the competition will react to this step and whether other companies will take similar steps to remain competitive. This represents an exciting development for both investors and the financial industry as a whole.