VIENNA, July 18 (Reuters) - Austria's financial regulator will cut the maximum guaranteed interest rates insurers are allowed to offer for life insurance and state-subsidised pension schemes to 1.5 percent from 1.75 percent.
The FMA said it was making the cut, which will take effect for new contracts from 2015, because of a sustained low interest-rate environment.
"This measure should ensure that guaranteed benefits from insurance contracts can continue to be fulfilled," the watchdog said in a statement on Friday.
In December, the FMA ordered insurers offering guaranteed-interest life-insurance products to make provisions to ensure they could make good on them.
Reporting by Georgina Prodhan; Editing by Pravin Char