Thursday April 24, 2014 Search
Weather | Athens
21o C
15o 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 sector’s 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 women’s premiums and an increase in men’s, 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)  
PPC to sell 500 mln euros of 3- and 5-year bonds
Greece´s NBG launches 5-year bond to raise up to 750 mln euros
Samaras meeting with Dimon key to Greek return to bond markets
Central Athens cleanup a sign of Greece´s turnaround
Suspect in student´s stabbing alleged to have threatened other pupils
A 22-year-old theology major standing accused of stabbing high-school senior Foivos D. outside his school in Palaio Faliro on Athens's southern coast in January 2013 allegedly threatened oth...
Greeks are the EU´s unhappiest workers, report finds
Greece is the only country among the European Union's 28 members states where fewer than half of its workers claim to be dissatisfied with working conditions, a poll published by Eurobaromet...
Inside News
BASKETBALL
Never underestimate the Greek hoopsters
Olympiakos and Panathinaikos, who between them have won the last three European crowns, won again at home on Wednesday to take their Euroleague play-off series with Real Madrid and CSKA Mosc...
BASKETBALL
Reds and Greens stay alive in Euroleague
Easter – and home advantage – worked wonders for Panathinaikos and Olympiakos who stayed alive in the Euroleague play-offs beating CSKA and Real Madrid respectively on Monday in Greece. Shak...
Inside Sports
COMMENTARY
Putting the party above the country
The case of Sabiha Suleiman, the Roma activist whose candidacy for the European Parliament was announced by SYRIZA only to be withdrawn shortly afterward, is an illustration of the leftist o...
EDITORIAL
Strong card in debt talks
Achieving a primary surplus and having it confirmed by the European statistical agency, Eurostat, is a significant success for Greece. There is no doubt that it came at a heavy price for a l...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Suspect in student´s stabbing alleged to have threatened other pupils
2. Greeks are the EU´s unhappiest workers, report finds
3. PPC to sell 500 mln euros of 3- and 5-year bonds
4. Injured American tourist taken off life support, said to be ´awake and alert´
5. Teen boy arrested in Thessaloniki drug bust
6. European court awards damages for ´degrading´ migrant detention conditions
more news
Today
This Week
1. Putting the party above the country
2. Three missing from cargo ship that went down off Crete
3. Strong card in debt talks
4. Central Athens cleanup a sign of Greece's turnaround
5. Samaras meeting with Dimon key to Greek return to bond markets
6. Police on high alert for Greek Cup final in Athens on Saturday
Today
This Week
1. Greece startup leaders say they can’t break jobless cycle alone
2. Ground-breaking Good Friday mass signals thaw in Cyprus
3. Mayoral candidates clash over Athens mosque plans
4. Government looks to kick on
5. Greece offers to help find Turkish F-16 lost in 1996
6. EU struggles to unpick the knot of Russia-Ukraine gas logistics
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.