Individual annuities at Hannover Re
All over the world, people are facing the challenge of securing a life-long income at retirement age and finding a flexible retirement product to suit their individual needs. It has become common knowledge that life expectancy is rising and social security systems alone cannot guarantee security in old age. However, if asked, most people underestimate both their life expectancy and the amount of funds needed to provide an income for life. Therefore, to maintain a standard of living and to ensure that the risk of running out of money is reduced, at least a portion of available funds at retirement should be invested in a retirement product. The insurance industry has the solution to meet these needs: life annuities. At Hannover Re, we understand the varied needs of consumers for financial independence in old age and team up with primary insurers to support them with our longevity product expertise.
Get ahead of your competitors by providing flexible retirement solutions: Enhance your customers’ benefits by taking into account their individual need of security in old age.
As the term "annuity" has different meanings in different countries and contexts, we explain what it means for us: Read more
Retirement solutions
Enhanced annuity
Is an underwritten annuity and pays a higher income than a standard annuity to people with health or lifestyle conditions, in recognition of the fact that they, on average, have a shorter life expectancy than a healthy person. This product has been successful in the UK since the mid-nineties.
Immediate needs annuity
An underwritten annuity, which pays a guaranteed income for life to help cover regular long-term care costs in exchange for a single lump sum payment.
Deferred annuity at retirement
Provides a guaranteed income for life beginning a few years (e.g. 10 years) after entering retirement.
Unit-linked annuity
Provides annuitants with a guaranteed number of units paid out regularly for life with investment up- and downside as the value of the units fluctuate with the investment performance.
Equity release solutions
Address elderly people that are “cash poor, but asset rich”, and have the capital value of their home. The idea is to release equity from their home while retaining the right of residence until death or a move into a nursing home.
Parents protection plan
In some cultures, parents are financially dependent on their children – especially in older ages. The parents protection plan is an innovative solution to cover financial needs of parents should they outlive their children.
It is possible to combine different solutions into one product, thus allowing the customer the choice between taking out money from an invested portfolio (drawdown) and annuity payments. Hence, the customer receives the most suitable retirement solution, with the right level of flexibility and security at a fair price. We look closely into each market and the very different client needs in order to develop tailor-made reinsurance solutions. Drawing on our global experience and capacity, we are well placed to realise various options and ideas with our clients.
Team up with Hannover Re
Hannover Re’s partners benefit from a cooperation in several ways:
- Biometrical risk sharing and cash flow stabilisation through a reinsurance treaty
- Risk-adequate setting of longevity assumptions developed by and continuously updated by our data analytics team
- Support in product development, taking into account state-of-the-art behavioural economics research
- Automated underwriting systems providing guaranteed quotes at point of sale
- Financial solutions in order to mitigate new business strains
Regardless, if you are a first mover in your market or aiming to enhance your product offering in an already developed market: As worldwide leaders in longevity reinsurance, we at Hannover Re are the ideal partner for your annuity business. We look forward to teaming up with you to make your retirement solution offering a success story.
Our flexibility
We are flexible with regard to reinsurance solutions and offer single premium, regular premium or deposited reserve agreements. If desired we are happy to discuss financing solutions in order to finance new business strains.
If you need further information or would like to send us feedback, please feel free to get in touch.
*The information provided in this document does in no way whatsoever constitute legal, accounting, tax or other professional advice. While Hannover Rück SE has endeavoured to include in this document information it believes to be reliable, complete and up-to-date, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.
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