Savings and investment products – a giant but competitive market
In product design, life insurers must compete not only with their peers, but also with rival offerings from banking and asset management. On such a crowded playing field, you should not be alone.
Helping you keep your investment management promise
Savings and investment products generate the vast majority of life insurance industry premiums and associated policy reserves.
These assets invested by retail consumers represent a significant expression of trust and belief in the promises made by insurers to deliver attractive returns alongside prudent risk management, enabling consumers to reach their financial goals.
The dominant challenge facing life insurers has become the management of guarantees on legacy saving product portfolios and the design of new products that provide a compelling offer of growth and security in times of interest rate volatility.
Investment management = value creation + capital preservation
Product design framed around the needs of the customer
Scenario 1: Demise of policyholder at age 50
His policy value is € 250K – the highest monthly value attained since he joined. Policyholder’s family receives € 250K, a legacy payout of 125% of the initial single premium.
Scenario 2: Demise of policyholder at age 70
His policy value is € 120K, but the highest monthly value, locked in at € 310K, will be paid at the time of death. Policyholder leaves behind € 310K, a legacy payout of 155% of the initial single premium.
Scenario 3: Policyholder reaches age 99
Since policyholder joined, the highest monthly value locked in is € 310K. Even though the current policy value is only € 220K, policyholder receives the full € 310K, a payout of 155% of the initial premium.