Wartość wykupu polis życiowych z Ubezpieczeniowym Funduszem Kapitałowym
Unit-linked life policy surrender value

Summary/Abstract: The article discusses the issue of low surrender values of unit-linked life policies which are terminated prematurely. This issue, in particular the zero surrender value in the first two years, is negatively perceived by the market regulator, and an intervention can be expected which will impose limitations on the minimum surrender value in the case of policy’s early termination. The article advances the thesis that zero surrender rates do not result from contractual penalties for early termination of the insurance, but are a consequence of settling initial costs which have not been depreciated. The settlement mechanism complies with the rules of insurance accounting and actuarial standards. The intervention connected with minimum surrender rates will not sub- stantially change the insurer’s result, but will improve the situation of short-term participants of the long-term contract at the long-term participants’ expense. It is difficult to defend the logic of such an intervention.On the other hand, international experience shows that combination of a life policy with an investment programme gives a product which cannot be compared easily with others, so insur- ers take advantage of the market’s lack of transparency and charge their products with high cost mark-ups and profit margins. There are, therefore, arguments for the introduction of the upper ceil- ing for initial costs, to limit availability of this cost category, which is so convenient for the insurer. First of all, however, the regulator should ensure better transparency of unit-linked insurance con- tracts and strengthen price competition by means of better comparability of costs of investment services on the insurance market and financial markets.

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