Sergio Álvarez Camiña, General Director of Insurance and Pension Funds, has given a warning to life insurance: “There is no competition”.

Sergio Álvarez Camiña, General Director of Insurance and Pension Funds, has given a warning to life insurance: “There is no competition”.

Sergio Álvarez Camiña, General Director of Insurance and Pension Funds, has given a warning to life insurance: “There is no competition”.

Sergio Álvarez Camiña, in a file photo.

The sad reality of company pension plans. Of the 1,300 registered in our country, only six of them have been able to channel savings of more than 1,000 million euros and only one Twenty, including those six, today exceed 350 million in assets under management.

These are the data you have provided Sergio Alvarez CamiñaGeneral Director of Insurance and Pension Funds, to justify both the fiscal reform of the private pension system and the creation of publicly promoted pension plans with private financial management that the Government of Pedro Sánchez is promoting.

Camiña, who has participated in the fourth Economic-Insurance Meeting of the Mutual Society of Lawyershighlighted the “Little capacity for influence that these funds and pension plans have as institutional investors which are in the companies and markets where they invest, as well as in the dialogue with the governments”, in a comparison of these Spanish financial vehicles of finalist savings with their international counterparts.

If they take into account corporate pension funds and not the plans below, only seven of the 350 that currently exist exceed 1,000 million assets, and only 14, including those seven, are above 500 million.

Of the approximately 124,000 million euros that comprise the three private pension systems in Spain (individual, employment and associated), two thirds correspond to individual and barely a third to business. “Just the opposite of what was wanted at the beginning of regulating pension funds 30 years ago now”, Álvarez Camiña reiterated.

Call of attention to life insurance

With the General State Budgets for 2022, it has been proposed that individual plans lower their maximum annual contribution to be deducted in personal income tax to 1,500 euros, while collective plans increase this contribution to 8,500 euros, up to a total sum of 10,000 euros.

On the other hand, the Draft Regulatory Law for Publicly Promoted Employment Pension Funds and Simplified Employment Pension Plans has been drawn up, which must now be debated and processed.

The intention of the Government and, in particular, of its Minister for Inclusion, Social Security and Migration, José Luis Escrivá, is to “expand the base of participants in the second pillar”, that is, company pension plans. And that happens by “extending coverage to SMEs and freelancerstransferring part of the existing savings to these new plans” which, in the opinion of Álvarez Camiña, are “the normal way where the self-employed should have their complementary retirement savings”.

The Director General of Insurance and Pension Funds has also taken advantage of this forum to issue a warning to the group of life insurances. “There is not much competition, they are very similar to each other. This type of insurance is too based on tax benefits. The sector has to think, move forward and adapt to the new needs of citizens”, he has sued the insurance companies.

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