Anticipated Significant Overhaul of Willis Towers Watson's Online Platform
In a significant move, Willis Towers Watson (WTW) has appointed Christopher Schumbert as the Managing Director of its Insurance Services subsidiary, which provides guidance on occupational pension schemes (bAV) to both international and mid-sized companies in Germany.
The appointment comes at a time when the insurance industry is undergoing a transformation due to the persistent low-interest environment and increased regulatory requirements. Traditional life insurers and pension providers have been pressured to reduce guaranteed interest rates on bAV products, leading to fewer guarantees and lower expected returns on traditional products such as classic life insurance with fixed interest guarantees.
Regulatory changes, such as Solvency II and recent pension reform laws, have increased capital requirements for insurers, making it more expensive for them to offer products with high guarantees. This has encouraged innovation towards products with fewer guarantees or hybrid models.
In response, insurers are expected to focus more on unit-linked pensions (fondsgebundene Rentenversicherung), where the investment risk and return potential shift from the insurer to the insured. New product developments may include dynamic hybrid products that combine some minimum guarantees with investment opportunities, as well as digital and flexible pension solutions to attract younger employees.
However, the specific changes in bAV insurance offerings due to the low-interest environment or regulatory requirements were not found in the current search results. For more detailed and updated information, specialized insurance or pension industry sources would be required.
Interestingly, the WTW survey conducted this spring shows that occupational pensions are perceived as more complex by commercial insurance customers and their employees. Christopher Schumbert, the new Managing Director, is expected to address these challenges and provide new solutions for companies.
Schumbert, a graduate in business administration, currently heads the business unit focused on insurance-based occupational pension schemes within WTW. Heinke Conrads serves as the Head of Retirement Germany and Austria at WTW.
It is important to note that these changes in bAV insurance offerings may require companies and employees to familiarize themselves with new insurance products. The WTW survey does not provide information about any previously mentioned data protection declaration.
Furthermore, life insurers are expected to take on more capital market risk in the future to offer profitable and attractive provisions in bAV. Despite this, the survey results suggest that companies and employees still have a preference for traditional, guaranteed bAV products.
Uwe Kettler and Sybille Siefer, previous Managing Directors, have retired at the end of last year and June, respectively. The appointment of Schumbert marks a new era for WTW's Insurance Services subsidiary as it navigates the evolving landscape of occupational pension schemes.
The appointment of Christopher Schumbert as the Managing Director of Willis Towers Watson (WTW)'s Insurance Services subsidiary is strategic, considering the financial industry's ongoing transformation in the insurance sector. With regulatory changes such as Solvency II and pension reform laws increasing capital requirements, there's a growing emphasis on unit-linked pensions and digital, flexible solutions to attract younger employees, a trend Schumbert is expected to address in his new role. His background in business administration and current leadership role in WTW's insurance-based occupational pension schemes make him ideally suited for this challenge.
