On Sep. 9, BEL GVT issued decree setting the maximum interest rate.
BEL GVT issued ministerial decree setting the maximum reference interest rate for long-term life insurance transactions, with reference to the law of Mar. 13, 2016.
Background
Law of Mar. 13, 2016 introduced new calculation method to decide the maximum technical interest rate for life insurances, to ensure firms do not offer too high a rate.
Insurers may offer lower guaranteed rates, but must not offer a higher interest rate.
Decree
Ministerial decree sets out the rationale behind the decision on maximum reference interest rate, and states minister of economy's decision to maintain the rate at 2%.
Effectiveness
The 2% interest rate in the decree is applicable from Jan. 1, 2023.
Oct. 2023 Update
On Oct. 10, 2023, BEL GVT issued decree on the maximum reference interest rate for long-term life insurance operations; maintained at 2%, applicable from Jan. 1, 2024.
Sep. 2024 New Maximum Rate
On Sep. 5, 2024, BEL GVT published a new ministerial decree dated as Aug. 30, 2024, setting the maximum reference interest rate for long-term life insurance transactions.
A maximum technical interest rate for life insurance contracts relates to article 216, § 1, of law of Mar. 13, 2016 on the status and supervision of all insurers and re-insurers.
Ministerial decree sets out the rationale behind the decision on maximum reference interest rate, and states Minister of Economy's decision to increase the rate to 2.5%.
This interest rate will now correspond to the interest rate for calculating the minimum guaranteed return provided for supplementary pensions, to now align these two rates.
Based upon terms of the decree, interest rate will increase to 2.5% from Jan. 1, 2025.
Regulators
BEL GVT
Entity Types
IB; Ins; Pension
Reference
OG 2024008423, 9/5/2024; Decree 8/30/2024; OG 2023045189, 10/10/2023; Decree 8/31/2023; OG 2022033117, 9/9/2022; Decree 8/25/2022; Law Mar. 13, 2016
Functions
Actuarial and Valuation; Compliance; Financial; Legal; Operations; Reinsurance
Countries
Belgium
Category
State
Products
Insurance; Insurance-Life; Pensions; Retirement Plan
