Dhe German life insurance has had bad headlines for years. The low interest rate, which reduces returns, the additional interest reserve, which is necessary to secure guarantees, and the high distribution costs make the industry appear in an unfavorable light.
But the business economist Hermann Weinmann, who year after year makes the industry more transparent with a balance sheet check, contradicts this point of view. “German life insurance is not a case of crisis or restructuring, but presents itself as a somewhat restless, but safe haven.”
He has currently screened the twelve largest mutual insurance associations. They differ from the large corporations in that they belong to their members who are also customers. Most of them are in good to very good business shape, he writes in the analysis that will be published this Wednesday in the “Zeitschrift für das Versicherungswesen”.
The Hanse Merkur has developed noticeably
The Hanse Merkur has developed particularly noticeably. The Hamburg insurer is actually mainly active in private health insurance, but has increased its premium volume in life insurance from 161 to 651 million euros within ten years. The company had stated for the 2017 financial year that it had significantly reduced the one-off premiums, which are prone to fluctuations.
But the most recent upturn can now be traced back to precisely those single premiums that have been shaking up the industry for years because consumers lack attractive investment opportunities and they therefore invest their funds on a shorter-term basis than was previously the norm in life insurance.
Hanse Merkur had drawn some attention in the industry with its strategy in the health insurance division. For a long time, the board of directors had relied on low-priced entry-level tariffs for the self-employed. Unlike with competitors, however, it has not yet been found that these tariffs were priced too low.
In the first participation in the study immediately in 3rd place
And Weinmann also gave the company a good business report in life insurance. With a very strong result in this category and a good result in the consumer rating, Hanse Merkur landed third in the top twelve in the first qualification.
This is preceded by the LV 1871 and the Hannoversche Leben, which have also attracted attention in previous years with their good results. However, the success of the Hanoverians is put into perspective by the fact that the life insurance division is dominated by the risk life business and not by old-age provision. Alte Leipziger, Gothaer, Debeka and Continentale also still achieve good results.
Considerable differences can be achieved in the ranking at low cost. Both a low administration and a low acquisition cost ratio have a strong impact on the result. In this criterion, Debeka and Hanse Merkur stand out from their competitors, and to a certain extent also Hannoversche Leben and HUK-Coburg.
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