German Association of Actuaries recommends a maximum actuarial interest rate of 1.0 percent for 2026

A prolonged period of low interest rates was followed by a significant rise in interest rates in 2022 and 2023, partly due to higher inflation rates. Inflation has since calmed down again. Interest rates have also fallen slightly, but remain well above the level before the war in Ukraine. The DAV's assessment, based on current model calculations and economic analyses, is that the maximum actuarial interest rate set by the Federal Ministry of Finance for new contracts can be kept stable in the medium term. The DAV therefore recommends a maximum actuarial interest rate of 1.0 percent for the actuarial reserve under commercial law for life insurance contracts with an interest rate guarantee (HRZ for short) for 2026. 

You can find more information on this topic in the pdf linked to the right and on our german website