The North Rhine-Westphalia Consumer Center and Finanzwende are fighting together against unlawful pension cuts by Zurich Insurance

The North Rhine-Westphalia Consumer Center and Finanzwende are fighting together against unlawful pension cuts by Zurich Insurance

According to a report by erkrath.now,
The North Rhine-Westphalia consumer advice center and the citizens' movement Finanzwende have taken legal action against Zurich Lebensversicherung because it puts customers with Riester pensions at a financial disadvantage when it comes to payouts. The citizens' movement Finanzwende and the North Rhine-Westphalia consumer advice center are joining forces to prevent unlawful pension cuts by the life insurer Zurich. Since other insurers also use similar contractual clauses to reduce pension entitlements, the aim of consumer advocates is to obtain a fundamental ruling. According to estimates, such a ruling could help thousands of Riester and life insurance customers with unit-linked Riester contracts to receive higher pensions.
In one case, the Cologne Regional Court has already declared a Zurich contractual clause to be invalid, which puts customers with Riester pensions at a financial disadvantage when it comes to payment. However, Zurich Insurance continues to grant itself the right to reduce the pension factor in unit-linked Riester contracts. The clauses are similar for other insurers, which is why consumer advocates assume a large number of those affected. In addition to Zurich, the North Rhine-Westphalia Consumer Center has already warned two other insurers.

The unlawful pension cuts for Zurich customers and other insurers could have serious consequences for the consumers affected. By reducing the pension factor in Riester contracts, customers later receive a lower monthly pension, which can mean significant financial losses. A successful lawsuit and the enforcement of a landmark judgment in favor of consumers could help thousands of Riester and life insurance customers with unit-linked Riester contracts to receive higher pensions. In addition, such a ruling would also put pressure on other insurers to review and possibly adapt their contractual clauses to avoid similar legal action.

It is important to emphasize that the pension factor in a Riester contract determines how much money customers will later receive as a pension per 10,000 euros of capital. Reducing this factor can significantly reduce pension payments, as became clear in the case against Zurich. If the NRW consumer advice center and the Finanzwende citizens' movement are successful, this could have far-reaching effects on the practice of insurers and benefit the affected consumers.