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.

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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

Retail consumers require flexible products that cover diverse needs across different stages of life. Munich Re's approach to savings and investment products is to focus on both the delivery of (1) an attractive investment return offer that helps policyholders accumulate value over time and (2) appropriate capital preservation features that ensure the accumulated value is available to meet needs as they arise.

Product design framed around the needs of the customer

Explore how we mitigate financial market risks

Munich Re

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.