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4 reasons for suspicion of pension fund reform

4 reasons for suspicion of pension fund reform

Pilar Gonzalez de FrutosPresident of Unespa, has spoken today on 39 APIE Seminar. “Sustainability and digitalisation: recovery”organized by the Association of Economic Journalists at the Palacio de la Magdalena (Santander), headquarters of Menéndez Pelayo International University.

In his speech, he outlined 4 reasons which, in his opinion, preach suspicion with amendments to the pension plans approved by the Senate on Wednesday, which are as follows:

  1. Lack of motivation
  2. “Vampirization” between pillars
  3. Lack of support for the entrepreneur
  4. Slow results due to lack of automation equipment, as in the British model

The president of Unespa has wondered “whether the current plan for promote foresight in business That’s what we need to do to balance and improve our common well-being. ” more specifically, I believe it is not designed in the best way. I think the golden opportunity to do things right has been missed; And that’s not good news because the truth is that we do not have enough opportunities because, so to speak, the 21st century agenda, this ‘other’ 2030 agenda that calls for us to create an adequate and sustainable pension system, it does not. have plenty of opportunities “.

In this connection, he added that “the new other Spanish pillar is intended to be built in a low stimulus environment. The project has therefore not made any effort to design and contain any measure that makes the employee visible benefits from membership in a savings system “. And he recalled that “the employee lacks information on the amount of his future pension, something that could lead him to take action to improve it.”

And he believed that “what it has done has been to disarm the typical long-term austerity measures, pension schemes and insurance, by reducing their tax benefits to a minimum. This leaves Spanish depositors with no benchmark for their savings and will likely have the effect of encouraging them to subscribe to speculation, short-term, less controlled products that are not in the finals and in many cases related to housing. “.

In the same way, he said that “The employment fund project is only about the employer. But nonetheless, the incentives that have been prescribed to convince him are, in fact, those that were already in place until 2014; And the result of these incentives, I think, is more than obvious in the fact that today we are talking about the fact that a common pension scheme has not been established. We are therefore relying on systems that have not worked in the past. “.

In addition, he added that “in the reforms, the tax benefits for individual savings were cut to ridiculous limits, as the current limits allow at most to allocate a pension of around EUR 120 per month; in the belief that the response of savings would have to be “transferred” to a common pillar. But that’s not what happened. What has happened is not that the savings have been transferred. What has happened is that it has stopped. It’s gone “.

In short, she has come to the conclusion, “the construction of the second pillar, in short, it requires more ambition, flexibility and action aimed at the concept of public-private partnerships; because against the problems of the 21st century, we should go with everything we have. “

Protection against the uniqueness of insurance

Regarding the establishment of the Supervisory Authority for the Defense of Financial and Insurance Companies, he pointed out that “we we defend independent and specialized supervision, there is a clearly differentiated supervision of insurance, banking and markets. And we believe that the same should be the approach to the subject in the case of the insurance customer. one authority that understands all interpretive conflicts of financial activities will easily run the risk of lacking the necessary expertise to judge insurance relationships. To cite examples, the similarities between bank deposits and PIAS are very few; and the difference, enormous and remarkable “.

And he continued to “in this matter, as well as insurers we have the feeling, and I want to make it clear, that the new authority would try to correct an error that Of course, we are not committed. The conflict burden that the insurance may assume today will be less than 100,000 cases anyway. And what’s very important is that we manage them in a timely manner. For years, we have been subject to legislation on service departments, policyholders’ advocates and similar figures, which establish a system for responding effectively with demanding deadlines. And we fulfill them. Those deadlines have, in fact, been shortened not so long ago; and again, we are going after that “.

And he has concluded, in this regard, “if there are bottlenecks in customer conflict management, we have not created them. We, as I say, manage this conflict in a timely manner. The only reason for the existence of the authorization is therefore the poor performance of public claims administrations.. But what, then, is the purpose of creating a new power? Would it not be more logical to strengthen the ways in which current cases are avoided in order to avoid delays? far from it, it is meant to create a power whose decisions are binding on us, not on the customer, under € 20,000. It is to confuse the protection of the client with the premise of the principle that he is generally right; and you can go to the own figures of Tryggingastofnun and the pension funds, based on the files it solves, to see that this latter confirmation is simply not true. In addition, it is intended to create a rate that does not even have discounts or nuances in the case, which as I say is as often as the opposite, where it turns out that the customer has wrongly claimed and it is the insurer that is right.

“In short, we believe this is an ineffective project “If it is not well-organized, it will not only fulfill the richer goal of making financial clients a reliable example, but it could achieve the exact opposite,” he concluded.

Challenges for the industry

With reference to the challenges that insurance offers Severalhas focused on everything related to new types of mobility. In this sense, he pointed out that “electric scooter and bicycle, therefore, they should have a liability, not a compulsory car insurance. Instead, they must have compensation limits commensurate with the risks they create while driving, which should not be as high as car insurance. And secondly, a more flexible legal system, which makes it possible to adapt compulsory insurance to new technology “.

In addition, he has referred to Frv network risk It points out that “it is necessary to make people, companies and institutions aware that it is in their best interests to protect their activities against cyberbullying. This need is particularly pronounced among small and medium-sized enterprises. “


About him life insuranceGonzález de Frutos has stated that “we can talk about a state of immunity, which was in fact appreciated before the pandemic because it has to do not only with it but the situation of low interest rates; reluctance which, however, has not resulted in a radical change in the fundamentals of life. The industry therefore maintains the stability it hadhowever, with a smaller size.

In the years 2020-2021, a radical changes in the market. According to the President of Unespa, “a turn for the worse, exceptionally relevant in the case of insurance and no less impressive in pension funds. In 2020, inventory management may need to benefit from its very specific characteristics; but the year 2021 leaves no doubt. The sign of net liquidity in the forecast in Spain has changed significantly and there is only one reason: abolition of tax subsidies or benefits “.

In your opinion, “economic policy can not be described as good or successful if it causes earthquakes like this. A political decision that creates this kind of dynamic: the immediate collapse of the figure can not be considered a good political decision. the first duty of the public sector is not to distort the market and provide them with security. And he has come to the conclusion that “what has happened, plain and simple, is today we save less, much less, than we collected 12 or 24 months ago “.

In addition, he said that “Risk Life insurance shows a long-term perspective, which is not very encouraging”. In this regard, he explained that Life Risk “has, yes, managed to recover from the downturn caused by the financial-real estate crisis of 2008; but that recovery is between 1 million and 1.5 million insured below the pre-crisis threshold; with the worsening situation that the pandemic, although not a radical correction, has indeed been a brake on development. The good news is that the average premium is growing In short, it can be said that “Life risk insurance can expect continued growth, certainly with the exception of the fluctuations caused by the savings component; but at the same time not very fast”.

No life

In the pests section, the president of Unespa said about Health Insurance that “I believe the data indicates that Health insurance is effective and is therefore in a position to contribute “.

About the bouquet carspointed out that “Car insurance stands out for its powerful: the fitnessa. Because if all insurance is extremely competitive, then car insurance is very, especially in recent times “. He added that “competition in car insurance is very strong, with more than fifty operators in the market. But it’s even more so in an environment like the present, where the dynamics of the park are slowing down “. A branch that has also been affected by the “combined effects of the pandemic and the rise in fuel prices in the second half of the year,” he said.

Call for insurance SeveralGonzález de Frutos has pointed out the effects of the pandemic and unusual weather events on accident maintenance. For this reason, he pointed out that “today is the main issue in terms of property insurance Improvement of insurance schemes for unusual risks, but its essence is the insurance benefit group. We insurers believe that it would be interesting to improve an already greatly improved system “.

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