German insurers' life guarantee reserves 'to double' in 2013 as low yields bite
Increased ZZR reserves 'threat to insurers' business model'
The reserves German life insurers are required to hold against guaranteed products are set to double in 2013 as a result of the low investment rate environment.
The German Insurance Association (GDV), estimates that the Zinszusatzreserve (ZZR) will rise to approximately €10 billion in 2013, compared with €5 billion this year and €1.5 billion in 2011.
The ZZR was introduced in 2011 as an additional protection for traditional policies that offer high returns to policyholders.
BaFin, the German
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