Principles for a Causation-Oriented Approach to Participation in Valuation Reserves

Abstract

Since the revised Insurance Contract Law (VVG) came into force on January 1, 2008, policyholders in life insurance are entitled to participate in the valuation reserves upon contract termination. The process for implementing this regulation consists of three essential steps:

• Determination of the distributable valuation reserves
• Allocation of the distributable valuation reserves to individual contracts
• Payment of at least 50% of the allocated valuation reserves upon termination of a contract

This professional standard outlines general principles that should be considered in the first two steps of this process.