Allianz lowers Life yields for 2017

Allianz lowered the 2017 yields on its life insurance savings policies recently, cutting the return on its traditional product to 3.4 percent from 3.7 percent.

Many life insurers are struggling to meet guaranteed long-term returns as high as four percent as pressure from rock-bottom interest rates cuts investment income required to meet the payout commitments.
The insurer also cut the return on its new, top-selling life insurance product “Perspektive,” of which it sold 100,000 in the first three quarters of 2016, to 3.7 percent from 4.0 percent, according to a Reuters report.

Allianz said in a statement that its life insurance products still presented savers with an attractive alternative to other savings products, such as savings accounts, and added it expected demand to continue growing.