Generali and Wiener Städtische increase interest rates on life insurance - financial expert explains benefits of provision

Generali and Wiener Städtische increase interest rates on life insurance - financial expert explains benefits of provision

According to a report by www.versicherungsjournal.at, Generali Versicherung AG has increased the interest rate on classic life insurance. The interest rate for the current tariffs has been 2.55 percent since the beginning of the year, and a combination of a classic and a fund-linked portion is used for long-term capital accumulation.

The increase in interest rates in classic life insurance by Generali, as well as in other insurance companies, could have various effects on the market, the consumer and the industry. First of all, the attractiveness of life insurance for consumers could increase, as a higher interest rate additionally strengthens private provision. This could lead to increased demand for life insurance, which could potentially have a positive impact on the insurance market.

An increased interest rate in life insurance could also lead to other insurance companies following suit and also raising their interest rates in order to remain competitive. This could lead to an industry trend in which the interest rate on life insurance policies increases overall, which in turn could have an impact on the profitability and capital formation of insurance companies.

It will be interesting to see how the increase in interest rates in traditional life insurance will affect the insurance market and consumer demand, and whether other insurance companies will take similar steps to remain competitive.