GDV slams BdV over 'non-transparent' German life insurer SFCR claims

Written by Adam Cadle

16/07/2020

The German Insurance Assocation (GDV) has questioned an investigation by the Federation of Insured Persons (BdV) into the position of German life insurers, as “not adequately justified” and “non-transparent”.

The BdV examined the SFCR reports of 84 life insurers, and found that more than a quarter have serious problems around solvency or negative earnings expectations.

Sixteen of those insurers analysed had a solvency ratio of less than 100, according to the BdV. Of the insurers with a solvency ratio of less than 100 in 2019, only two have moved to over 100% - Athora and Münchener Verein.

However, the GDV defended the market, stating that all life insurers have sufficient own funds and security buffers to the extent required by law, and on average, life insurers provide twice or three times the legally required own funds.

“All German life insurers have a quota of over 100% and therefore sufficent security buffers, so no company is in trouble,” it said. “As of 31 December 2019, the quotas averaged 387% (254% without transitional measures) and thus far above the level required by the supervisory authority.”

The GDV also stated that life insurers are reallocating their investments away from government bonds to corporate bonds. Investments, infrastructure and shares are also playing a greater role than five years ago, the association added.

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