German insurers turn to CPPI and volatility control to back new guaranteed policies

ergo-dusseldorf

German life insurers are turning to innovative constant proportion portfolio insurance (CPPI) and volatility control mechanisms to underpin a new range of long-term guaranteed products.

Ergo, the life insurance subsidiary of Munich Re, will launch a product on July 1, which promises both a guaranteed return of gross premium and a guaranteed pension for life, in addition to potential investment participation.

Allianz Germany is also set to launch a new pension product, ‘Perspektive', on July 5 of