This is an additional option that can be agreed on at application stage. It means, that the insurance benefit and / or premium increases at regular intervals (usually annually) by a pre-defined percentage.

There are different forms:  

• Fixed indexation (regular percent increase (e.g. 3%, 5%, or 10% of the sum insured)
• Variable (adjustable according to the inflation rate or other comparable index)

Please note: The indexed sum insured can result in extreme increases and may require additional reinsurance.

As a general rule, we recommend the following:

• Maximum indexation percentage 7% up to a duration of 10 years
• Maximum indexation percentage of 5% for a duration above 10 years
• Maximum initial and indexed sum insured (to be defined depending on the product)

The following illustration is only exemplary. The calculation of the dynamic effect depends on various actuarial and company specific factors as well as on technical data.