DONAU Versicherung increases the total interest rate to 2.5 percent - financial expert explains the possible advantages

DONAU Versicherung increases the total interest rate to 2.5 percent - financial expert explains the possible advantages

According to a report by www.ots.at, DONAU Versicherung has increased the total interest for its customers. The change in interest rates brings good news, as the total interest rate in classic life insurance and for the cover pool portion in unit-linked life insurance will be increased from 2 percent to 2.5 percent.

The increased overall interest rate makes classic life insurance more attractive and strengthens private retirement provision. In particular, the premium-subsidized future provision “Bonus Pension” benefits from an increase in the total interest rate to 2.25 percent. This move is a positive development for customers and may lead to more people choosing to take out life insurance.

For the insurance industry, this represents a step towards customer retention and acquisition. By increasing the overall interest rate, insurance companies can increase their attractiveness in the market and stand out from competitors. There can also be positive effects in the area of ​​company pension schemes, as interest on pension products plays an important role for companies and employees.

Demographic developments are increasing the desire for precautionary measures, which is also made clear by a youth study recently carried out by DONAU. This increasing demand for pension products could lead to positive growth in the insurance market.

Politicians are called upon to create tax incentives for private pension provision in order to strengthen pension provision. Specific proposals from the insurance industry include, among other things, the reform of premium-based pension provision, the reduction of insurance tax on pension products and the promotion of company pension schemes by increasing the tax-free amount.

Overall, increasing the overall interest rate to 2.5 percent can have a positive impact on the insurance market, customer loyalty and the growth of the retirement savings industry. It is an important step towards strengthening private provision for pensions and increasing the attractiveness of pension products.