The swisspartners Group with its business units in the Principality of Liechtenstein and on the Cayman Islands writes solely fund-linked life insurance policies for wealthy private clients. These fund-linked life insurance policies generally comprise a mixed form of life insurance, which provide the policyholder with more flexibility in the investment process. Consequently, the policyholder also bears the investment risk and benefits from any investment performance.
Neither the repurchase value not the expiration benefits are guaranteed with these insurance products. In the event of death, the beneficiary receives the insured value or the fund capital, if this exceeds the insured amount. To finance the cover in the event of death in the case of a positive difference between the insured amount and the fund capital, a risk premium is charged to the fund each quarter.
The specific insurance risk factor of death is constantly monitored by the responsible actuaries. In doing so they employ standard actuarial methods stipulating adequate security margins (value-at-risk of the overall loss repartition at the specified security level). With the exception of a small own risk amount, the risks in the event of death are completely reinsured. The reinsurers have at least an «AA-» rating from Standard & Poor's and the default risk associated with them is regularly checked.