German Insurance - Compromise proposed on German policy reserve

News

German industry and the finance ministry have taken a positive step towards reaching a compromise agreement over how surplus bonuses that build up in life insurance companies should be distributed between policyholders and shareholders.

Under current rules, at least 90% of surplus reserves should be distributed to policyholders, with the rest going to shareholders. However, the way in which this is done is slightly different for policies written prior to 1994 and those written afterwards. For pre

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