"Financial security is not always assured in the long run."

In the ever-evolving financial landscape, traditional products are taking a backseat, and this is no different in the current German market. Amidst these changes, Standard Life, a UK-based financial services company, continues to make its mark, having been present in Germany since 1996.

The recent decision by a majority in the German Bundestag to suspend the debt ceiling of the Basic Law and secure a loan of 179.8 billion euros, coupled with the economic problems resulting from the Corona crisis, has underscored the need for innovative financial solutions.

Christian Nuschele, who heads sales and marketing at Standard Life in Germany and Austria, discusses the company's future prospects in the German pension market. The focus is on the increasing importance of sustainably investing savings products, particularly unit-linked policies.

Unit-linked policies, it seems, are becoming a popular choice, offering customers the potential to achieve their pension goals even in times of low interest rates. These policies provide very good solutions for asset structuring and asset transfer, and they offer a similar high degree of flexibility for deposits and withdrawals as a savings account.

The corona measures of governments and central banks have essentially cemented low interest rates, and the savings rate in Germany rose to a record high of 16.3 percent in 2020. However, the situation for customers has continuously deteriorated due to these low interest rates.

Unit-linked policies, despite the low-interest environment, can generate attractive returns. This is a significant advantage, especially for older customers with an investment period of 20 years or more.

Twenty-five years ago, when Standard Life entered the German market, Allianz offered classic insurance products. Today, solutions for pension provision in a low-interest environment include hybrid products combining guaranteed benefits with participation in investment returns and unit-linked pensions. Back then, customers enjoyed guaranteed interest rates of 4% on classic insurances and surplus participations sometimes over 7%.

The Fed Chairman in the USA has announced that he will hold on to the zero interest rates at least until 2023, and the European Central Bank (ECB) has kept the key interest rate in the Eurozone at 0 percent. Given this context, Christian Nuschele does not expect interest rates to rise in the foreseeable future.

In conclusion, modern insurance products offer very good investment opportunities for both risk-oriented and conservative customers, providing a beacon of hope in the current financial landscape.