Dutch insurer ING Group has launched its range of variable annuities products in Spain, representing the start of a broader European introduction.
This move is in line with the group’s strategy to capitalize on trends relating to the aging population. ING is building upon its success in the US and Japan with the introduction of the variable annuities with living benefits to the European market.
In light of rising life expectancies and historically low levels of birth rates, the insurance company recognizes that the European consumer needs are shifting towards products that allow them to control their financial future, particularly after retirement. As aging populations continue to strain state-funded pension programs in Europe, consumers are increasingly aware of their personal responsibility for providing retirement income, and more and more are seeking retirement solutions that can protect them against the longevity risk.
Variable annuities are a new generation of life insurance product. They allow customers to benefit from the attractive upside investment potential associated with equity markets, while simultaneously offering a guaranteed minimum lump sum or retirement income.
Based on its success in the US and Japan, ING plans to roll out its variable annuities products in a number of European markets starting with Spain.