From 2016 onwards
C.04 Editorial board of an international magazine
Slovenian inhabitants are exposed to the increased risk of the decline in their income when retiring. The first pillar of the Slovenian pension system has become more and more unsustainable, as confirmed by financial data of ZPIZ. Other EU countries are confronted with similar problems. The pressure on the sustainability of the first pillar of the pension system has been increased by the premature retirement, which effectively eliminates the impact of the pension reforms with respect to the increase of the retirement age. In addition to the wide reform of the second pillar of Slovenian pension system, that is currently a discretion of the employers, it is crucial that additional mechanisms are designed in Slovenia that will lead to the focused pension savings within the scope of the third pillar of the Slovenian pension system. In this way, people, supported by government stimulation, could take their own initiative and responsibly save for their elder years to assure financial independence. This is becoming crucial especially for the middle and even for the lower social class.
C.02 Editorial board of a national monograph
COBISS.SI-ID: 264069888Valuing technical provisions of life annuities depends mainly on projected demographic trends. A life annuity is a specific insurance contract in which one party (an insurance company), in exchange for payment of a premium, guarantees a series of payments until the death of the other party (the insured person). The projection of future mortality improvements has significant effects on pricing and reserving for life annuities. As such, annuities are associated with longevity risk, in that decreasing mortality rates of the insured population lead to an increase in the number of annuity payments. There are no official projected annuity tables for annuity owners in Slovenia. To value life annuities, insurance companies in Slovenia use annuity tables that are based on the mortality profile of populations in foreign countries. The Slovenian Insurance Supervision Agency has set the German annuity tables DAV 1994 R as the minimum standard. This means that insurance companies value their liabilities using DAV 1994 R annuity tables; however, they can use other tables, as long as those tables produce higher technical provisions than the DAV 1994 R. The result, though, is that the industry standard is to use the DAV 1994 R tables for pricing and reserving and, in turn, mortality statistics from 1994 on the insured in Germany are used to value liabilities for annuities and pensions in Slovenia. The DAV 1994 R tables were used in the German insurance industry until the DAV 2004 R tables were introduced in 2005. The replacement resulted in a 10–20% increase in premiums for deferred annuities in Germany, depending on the insured’s age and sex. This substantial increase in premium rates raised an important question for the Slovenian insurance industry: Are the DAV 1994 R tables still sufficient or even appropriate for measuring the best estimate of liabilities from annuities and pensions in Slovenia? To answer this question, the international working group on mortality was established in 2010 to develop the first annuity mortality tables for the Slovenian market. This monograph presents the results of the group’s work. The work of the group was financially supported by the Slovenian Association of Insurers.
C.02 Editorial board of a national monograph
COBISS.SI-ID: 262727936