The crisis of the Fwu insurance group
In recent months, the insurance group Fwu has attracted attention for its severe financial crisis, involving about 100,000 Italian savers. The situation became critical after the Luxembourg authorities declared the company’s recovery plan failed, leading to the forced liquidation. The total value of the life insurance policies concerned is estimated at around 300 million euros, but the final data are still uncertain
.
The causes of the meltdown
The
financial difficulties of Fwu Life Insurance, which operates in Italy through its subsidiaries Fwu Life Insurance Lux and Fwu Life Insurance Austria, are attributable to a high level of indebtedness. The company suspended policy payments for six months, due to serious economic problems that culminated in the declaration of insolvency by the Munich Court. This raised concerns among savers, many of whom had invested in policies considered to be high return and low risk, but which in reality proved
to be highly risky.
The implications for savers
The current situation has generated anxiety among Fwu’s customers, who are now in a condition of uncertainty. The policies involved are mainly of the “unit linked” type, which means that the capital is linked to the value of investment funds, increasing the risk for less experienced investors. Federconsumers’ Federation has already launched initiatives to support savers, inviting them to monitor the situation and to contact the branches for assistance. Experts warn that the liquidation of the company could take months, leaving savers in a stalemate.
Recommendations for Fwu customers
In this context, lawyer Antonio Pinto of Confconsumers’ advising Fwu clients to suspend any payment of additional premiums, since there is a real risk that such payments may be lost. The company’s recent communications are baseless and customers are entitled not to pay additional premiums. In addition, the president of Confemphasized the importance of a direct channel between Ivass and the Luxembourg Supervisory Authority to ensure that Italian savers can access
the available protection tools.