Life insurance market stabilizes amid rising interest rates

The life insurance market is showing signs of stabilization following several turbulent years. Increased interest rates have provided relief for earnings positions, and industry security indicators are demonstrating strong values. However, experts note that cancellation rates continue to rise.

In a recent update to the life insurer rating conducted by Wirtschaftswoche and Ascore Das Scoring GmbH, the projected realistic capital investment return for classic policies is estimated to be between 1.7 and 3.0 percent. The study identifies Europa, Universa, Inter, and Hansemerkur as the most capable companies from a customer perspective. Additionally, twelve other companies received the highest five-star rating. The evaluation methodology considers future interest rates based on available capital, acquisition costs, administration cost ratios, and payout ratios.