Monday September 22, 2014 Search
Weather | Athens
27o C
19o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Insurance premiums set for major hike from January

Insurance companies will raise their premiums for new policies as life expectancy rates have increased and their revised charts are going to be factored into the sectors calculations from January 2013.

By Evgenia Tzortzi

The new year is set to bring an increase of 40 to 60 percent to private pension programs and healthcare insurance policies for those who wish to sign new contracts.

Pension programs soaring costs are rendering access to private social security even more difficult, at a time when public social security provisions are decreasing and people are seeking solutions that will secure them a decent pension in the future.

Premium hikes are not the outcome of the policy of insurance companies. Rather, they are due to external factors and developments at the European level. Their combination is leading to a radical change in the insurance products available in this country.

The first change concerns the application of a directive that forbids sex discrimination in the pricing of insurance products. This ban has been imposed through a European Union directive drawn up following a case brought to the European Court by a Belgian consumer group and will apply as of December 21.

Another serious reason for the premium hikes is the revision of life expectancy charts that insurance companies base their calculations on. The charts, which show expected longevity per age group, were recently updated by the Bank of Greece and will apply from the start of 2013. Both men and women are now expected to live longer than in the past and this will be reflected in insurance policies.

Regarding sex discrimination, to date, women have paid higher premiums for pension products than men, as the fact they tend to live longer meant they would need more money in order to amass the stock to secure them the pension agreed with the insurance firm, which must be paid for more years than in the case of men.

One would have expected that this would lead to a reduction in womens premiums and an increase in mens, but that is not the case. The reason for that is the life expectancy charts, whose application pushes premiums higher for both sexes.

For example, previously, a 40-year-old man signing a new pension contract would pay 2,215 euros a year to secure 500 euros a month at the age of 65, but with the new tariffs he will have to pay 3,475 euros per annum, while a 30-year-old woman paying premiums of 1,560 euros a year to get a 500-euro pension when she hits 65 will now have to pay 2,280 euros per annum.

This dramatic hike in premiums for men and women is also attributed to a third factor: This is the interest rate on which guaranteed pension, which the insurance company is committed to paying, is calculated. The downward course of the markets has seen all investments by insurers yield less, forcing them to reduce their rates. That means that the insured will have to pay more money now to amass the required amount by the end of their working years.

ekathimerini.com , Friday December 14, 2012 (21:58)  
Pegging reforms to debt relief acts
Demand for diesel boosts total fuel sales
Foreign investors not overly concerned about political risk
IMF unhappy over social security debt collection
Results of probe into 20 Lagarde list names due soon
Members of the Financial Crimes Squad (SDOE) and tax inspectors involved in an investigation into the so-called Lagarde list of Greeks with Swiss bank accounts expect to be able to announce ...
Police refute reports of Jihadi training
Greece is not a training ground for Jihadis, the Greek police said in a statement released late on Friday in response to reports in the local media claiming that radical Islamists have been ...
Inside News
SOCCER
Reds beat Veria to claim league lead
Olympiakos thumped hitherto Super League leader Veria 3-0 on Saturday to go alone on top of the table for the first time after four rounds of games. Four days after putting three past Atleti...
SOCCER
Triumph for PAOK, historic result for Asteras in Europa League
Greek teams produced a patchy record on the opening night of the Europa League group stage on Thursday, as PAOK thrashed Dynamo Minsk, Asteras Tripolis snatched a draw at Besiktas and Panath...
Inside Sports
COMMENTARY
Universities threatened by transfers
The problem arising from the abuse of the Greek university transfer system whereby some students are allowed to move to an institution of their choice instead of the one they were admitted...
EDITORIAL
Capital changes
A sizable part of the middle of the Greek capital has been slated to receive a significant makeover with the implementation of an urban restructuring project which includes turning a key cit...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Reds beat Veria to claim league lead
2. Pegging reforms to debt relief acts
3. Demand for diesel boosts total fuel sales
4. Foreign investors not overly concerned about political risk
5. IMF unhappy over social security debt collection
6. Agenda
more news
Today
This Week
1. IMF unhappy over social security debt collection
2. Foreign investors not overly concerned about political risk
3. Demand for diesel boosts total fuel sales
4. Agenda
5. Pegging reforms to debt relief acts
6. Greece can meet its needs on its own
Today
This Week
1. Greece at bottom of social justice scale among EU28
2. Central Athens traffic restrictions back in force on Monday
3. Greece can meet its needs on its own
4. Lost in the fog
5. Record sum of new debts to the state in August
6. Democracy under Pressure | Live Streaming
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2014, H KAΘHMEPINH All Rights Reserved.