Friday May 22, 2015 Search
Weather | Athens
14o C
09o 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)  
Car sales drop a gear on VAT rate uncertainty
Bulk of loan requests comes from food service
Greek yields climb after Riga summit
Georgios Michelis said to be next HFSF chief
Deal no closer following PMs meetings in Riga
Athens believes that Greece could still clinch an agreement with its lenders but probably at the start of June, rather than by the end of this month as it had previously hoped, following the...
Greece to back NATO-led campaign against ISIS, Kammenos says
Greece will join the United States and other NATO members in efforts to defeat militants of Islamic State (ISIS), an issue which is expected to be discussed in the summit of the transatlanti...
Inside News
SOCCER
Greece escapes soccer suspension, FIFA happy with changes
FIFA says it is satisfied with changes made to sporting law in Greece, and has dropped a threat to suspend the country from international competition. In a letter to the government dated May...
SOCCER
Four-goal Panathinaikos thrashes Asteras away
Panathinaikos thrashed Asteras at Tripoli to gain an early advantage in the race for a spot in next seasons Champions League qualifiers, as the Super League play-offs got under way on Wedne...
Inside Sports
EDITORIAL
Consensus is key
The education bill that has been put forward by Greeces leftist-led government has to be the subject of extensive public consultation. Even more importantly, it needs to be approved in Parl...
COMMENTARY
The other inequality: how the state spends our money
Growing inequality between rich and poor across the world has rightly become the focus of much investigation and analysis. The Organization for Economic Cooperation and Development underline...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
RECENT NEWS
1. Deal no closer following PMs meetings in Riga
2. Greece to back NATO-led campaign against ISIS, Kammenos says
3. SYRIZA, ND waver over agreement
4. Nearly 800 irregular migrants detained as EU mulls refugee relocation plan
5. Car sales drop a gear on VAT rate uncertainty
6. Bulk of loan requests comes from food service
more news
Today
This Week
1. Merkel stamps out brief optimism on Greece after Tsipras talks
2. Lessons from Israels tech miracle
3. Tsipras to meet Juncker on second day of Riga summit
4. EOPYY struggles for funding, sees overdue debt rise
5. Civil aviation staff to hold walkout on holiday weekend
6. Banks will be asked to revise their restructuring plans
Today
This Week
1. The Greek-German breakthrough that didnt come
2. Phony dilemma
3. Greece came close to not paying IMF
4. Conspiracy madness
5. National self-awareness put to the test
6. Albanian demarche raises concerns about possible territorial claims over Greece
Find us ...
... on
Twitter
... on Facebook
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright 2015, H KAΘHMEPINH All Rights Reserved.