Reiner Schwinger, the head of retirement solutions, argued that occupational pensions (bAV) are already doubly insured in the German system, with the employer stepping in should either Pensionskasse or Pensionsfond be unable to cover the pension promise.
Towers Watson also said that, unlike insurance companies where profit was a motive, employers only saw this as a way of offering occupational pensions. It argued that the conflict of interest that could arise between generating profit and acting in the interest of members was therefore "not possible".
Schwinger said an all-inclusive approach, incorporating bAV and insurance companies, would be inappropriate. He added: "It would be more sensible to allow for a graded regulatory approach, taking into account the unique aspects of bAV in Germany. Applying Solvency II regulations to occupational pension systems would render them uneconomical and therefore less attractive."
The consultancy said that, in light of the demographic change in Germany that will see its population fall by approximately 20m over the next four decades, bAV needed to be seen as a cornerstone of old-age provision.
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