In­surance sav­ings plans post growth

Kathimerini English - - Focus - EV­GE­NIA TZORTZI

Of­fer­ing guar­an­teed yields of 1.51.7 per­cent on av­er­age, in­surance sav­ings prod­ucts are now a ma­jor ri­val to time de­posits, whose in­ter­est does not ex­ceed 0.7 per­cent on an an­nual ba­sis, while that rate seems set to drop fur­ther.

The aim of lo­cal banks is to bring time de­posit in­ter­est rates down to around 0.5 per­cent within 2017, pro­ceed­ing to fur­ther cuts once the bailout re­view is com­pleted and the de­posit out­flow of the first two months of the year has stopped. The very low in­ter­est ren­ders real re­turns neg­a­tive once the in­fla­tion rate – that has just reap­peared in Greece – is fac­tored in.

Ac­cord­ing to data from the Hel­lenic As­so­ci­a­tion of In­surance Com­pa­nies (EAEE), sales of in­surance sav­ings plans in­creased at an an­nual rate of 19.2 per­cent last year, and the turnover of the life in­surance sec­tor amounted to 1.4 bil­lion eu­ros in Greece.

By con­trast, in­vest­ment in­surance prod­ucts de­clined by 16.8 per­cent last year, with this port­fo­lio amount­ing to 271.4 mil­lion eu­ros. The im­po­si­tion of the cap­i­tal con­trols ham­pered these in­vest­ments mainly in se­cu­ri­ties abroad, due to the monthly 1,000euro limit on money ex­ports.

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