In view of the consistently low interest rates, the Austrian Financial Market Authority (FMA) will lower the maximum guaranteed rate in classic life assurance and state-sponsored retirement provision products from the current 1.75% to 1.5% from 1 January 2015. This change is laid down in the amendment to the Maximum Interest Rate Regulation, which entered into force on 17 July 2014 (Federal Law Gazette II No. 179/2014) by FMA regulation.
The FMA Maximum Interest Rate Regulation refers solely to the guaranteed interest for the savings premium, i.e. the premium paid in less taxes, risk and cost shares. This is to ensure that guaranteed benefits from insurance contracts can also continue to be fulfilled in the long term. Possible profit sharing is not affected by this change.
The now effective amendment must be adhered to in insurance contracts that are concluded from 1 January 2015 onwards. For existing classic life assurance contracts the interest rate guaranteed at the time the contract was concluded continues to apply, also for those premium shares that are paid in after 1 January 2015.
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516