Germany’s finance ministry is considering new measures to support life insurance companies that are struggling to give guaranteed returns due to low interest rates.
The new measures may include introduction of caps to agent commissions as well as enabling improved flexibility on base rates.
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State secretary Michael Meister told Reuters, "The finance ministry aims for a long-term, comprehensive stabilisation of life insurance."
The proposed measures are expected to create good balance between savings clients insured under different maturities, while helping the companies to stay solvent.
Currently, there are 93 primarily small life insurance firms in Germany, with majority of them struggling with low interest rates.
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