Trouble looming for insurance companies – The "eternal" right of withdrawal in life insurance
Life insurance's reputation has suffered in the past. Complaints were in particular made about the costs associated with the product and the repeatedly reduced guaranteed interest rates also lead to soured tempers. But a decision by the Austrian Supreme Court (case GZ 7 Ob 107/15h) has caused quite a stir among insurers in Austria and also given rise to a great deal of uncertainty. A mistake in the notice concerning a policyholder's right of withdrawal could now lead to a large number of life insurances in Austria being rescinded.