Mr. Diekmann, the financial world has gone through yet another year of crisis management. Does it make any sense at all at the moment to think about the future and sustainability?
Michael Diekmann: The financial and debt crisis can do more than any Sunday sermon to reinforce awareness of the value of doing business sustainably. We won’t be able to live beyond our means forever.
How can that be done simultaneously – crisis management and doing business sustainably?
The crisis is an opportunity if, as citizens and consumers, we recognize the need for action and also give government our backing for courageous, long-term policy choices. That goes as much for the EU and global trade as it does for climate protection and demographic change.
What role can the EU play in the future?
The EU is the entry ticket for all its Member States if they want to be global players. China and India each have more than twice the population of all 27 EU countries combined. By 2040, Africa will have more than four times the population of the EU – half of them under the age of 24. Those are the basic figures for the competition ahead of us – in which we can be successful only if we join forces and focus on our strengths: research and knowledge, unity and peace, efficient use of resources and sustainability. I think that’s a formula with which the EU can offer a promising future for 500 million people and their trading partners.
Don’t we need to get the financial crisis under control before we turn back to rescuing the climate?
The climate won’t wait for us to finish our homework. Global warming is continuing, and storms like Sandy show how ill prepared we are for the consequences. It’s not just a matter of preserving an intact environment worth living in – it’s also a matter of sustainable economic development. The earlier and more systematically we reduce our emissions and improve our energy efficiency, the lower the price we’ll have to pay. And whoever is the first to recognize that and establish reliable conditions to work in will be rewarded with investment, growth and jobs. As an insurer and investor, we’re willing and able to make a significant, reliable contribution toward risk management and funding. At the same time, we use the income from those investments to reinforce our clients’ retirement provisions.
Given low interest rates and rising life expectancies, is it justifiable to be concerned about retirement plans?
Low interest rates will leave their mark on retirement plans. But an equally serious factor is that most people start planning for retirement too late and underestimate the financial needs that will be involved in retirement - which these days lasts considerably longer than it used to. Getting started early, with an actively-managed investment portfolio, is the best strategy in a difficult environment like this.