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Summary
The global insurance market has shown resilience and growth, with the sector generating over $6,000 billion in life and non-life insurance premiums by 2020. In particular, non-life premiums have been growing faster, averaging 6.8% a year, compared with average growth of 2.71% a year for life premiums. The USA dominates the market, contributing 39.6% of overall premium income, while Germany ranks sixth with a 4% share. In Europe, the insurance landscape varies, with the UK, France and Germany being the top three countries in terms of highest insurance premiums. The German insurance market saw continued growth in primary insurance in 2021, with a CAGR of around 3.48%. General insurance in Germany grew at a CAGR of around 3.46%, with gross written premiums totaling around €77.29 billion in 2021. In addition, health insurance (PHI) saw annual growth of 4.43%. The German insurance brokerage sector is expected to reach sales of around 2 billion euros in 2023, with anticipated growth of 0.9% for the year and average growth of 5.2% per annum over the past five years.
Resilient growth and customer-centric trends in the German insurance market
Trends in the German insurance market The German insurance market has demonstrated consistent growth, paralleling global market trends, with a focus on satisfying the multifaceted demands of its consumers. Recently, total premium income for primary insurers in Germany has risen from around €192.58 billion in 2014 to around €225.87 billion by 2021. This reflects a compound annual growth rate of around 3.48% over the entire period, demonstrating the resilience and expansion of the market. Of the various types of insurance, statutory health insurance covers the largest number of people, around 90% of the population, underlining its indispensability in meeting the nation's healthcare needs. Private liability insurance follows with a popularity rate of around 80%, showing that citizens are aware of the need to protect themselves financially against personal liability. Other categories, such as home and car insurance, also show significant penetration, with respectively 76% and 50% of the population opting for these coverages. Life insurance, an essential element of the German insurance landscape, remains a crucial tool for citizens seeking financial security for their dependants and sustenance in retirement. In 2021, life insurance policies generated premium income of almost €103.23 billion, with annuity and endowment policies particularly favored.this reflects a preference for stable sources of income after retirement, and for long-term financial planning. In addition, the property-casualty sector consolidated its position with gross premium income of around 77.29 billion euros in the same year, underlining its importance in protecting against everyday risks. Customer preferences in this market are sophisticated, revolving around the security and flexibility of investments, as well as the reliability of the insurer. An impressive 85% are concerned about the security of their investments, with more than half giving priority to the credibility of the contracting party. Flexibility is paramount for 51%, while reasonable returns are sought by just under half. In terms of demographics, 38% of Germans fall into the category of "risk-averse hedgers", preferring comprehensive insurance cover, while around 28% correspond to the category of "risk-averse potentials", justifying a cautious approach to insurance, but with less extensive coverage. Overall, these results provide a clear picture of trends in the German insurance market, showing a strong penchant for security, both physical and financial, while also exposing the varied preferences of its consumers.
Key players in the German insurance brokerage landscape
The German insurance brokerage market is a dynamic and vital component of the wider insurance industry, playing a crucial role in connecting customers with insurers to find the best coverage options. Notable market players are not only diverse in their specialization and market share, but also contribute significantly to the sector's robust growth and expansion. Here is a brief overview of the main brokers operating in the German insurance landscape:
General and specialist insurance brokers
- Allianz Insurance: Allianz, one of the giants of the insurance world, is a household name offering a wide range of insurance products. Allianz's brokerage services are renowned for their comprehensive approach to providing tailor-made solutions for individuals and businesses.
- Aon Insurance: Renowned for its global presence, Aon brings a wealth of expertise and innovation to the table. It offers risk management, insurance and reinsurance brokerage services, as well as human resources solutions, to a wide range of clients.
- Marsh Ltd: Part of the Marsh & McLennan Companies group, Marsh is a world leader in insurance brokerage and risk management. Its services are renowned for helping customers cope with a wide range of risks, both emerging and traditional, in an ever-changing marketplace.
Niche markets and outsized influence
- ERGO Group: Specializing in various sectors, ERGO takes a unique approach to insurance, offering individuals and businesses customized insurance, benefits and services.
- HDI Global SE: Primarily serving the needs of industrial and commercial customers, HDI Global SE's brokerage services demonstrate its expertise in covering the complex and unique risks faced by businesses.
- Gothaer Insurance: With a history dating back over a century, Gothaer offers a range of insurance products from health to life and property, targeting both private customers and SMEs with their personalized services.
The leading brokers on the scene
- EcclesiaGroup: Operating primarily in the health and social care sectors, Ecclesia Group's brokerage services are synonymous with in-depth industry knowledge and customer-focused advice.
- Funk Insurance Broker GmbH: This broker prides itself on being Germany's largest family-owned insurance broker, offering risk and insurance solutions for multiple sectors with a personalized touch.
- GrECo JLT GmbH: Thanks to its expertise in specific sectors such as construction, real estate and industrial risks, GrECo JLT GmbH offers tailor-made risk and insurance solutions for a wide range of industries.
to understand this market
Detailed content
Inforamtion
- Number of pages : 30 pages
- Format : Digital and PDF versions
- Last update : 02/08/2023
Summary and extracts
1 Market overview
1.1 Introduction
The insurance brokerage market consists of intermediaries who bringclients and insurance companies togetherto help them find the best possible insurance coverage. Insurance brokers are required by law to put the interests of their clients ahead of those of the insurance companies they work with, thus ensuring impartiality in their advice. The segments of this market include different types of insurance, such as:
- Motor insurance
- Homeowners insurance
- Health insurance
- Life insurance
Insurance bro kers may be paid by insurance companies or their clients, depending on the type of insurance product and the market in which they operate. In addition, some brokers may also receive commissions, fees or premiums.
The insurance brokerage market has seen steady growth worldwide in recent years. The global market is expected to reach nearly $600 billion by 2028, with a CAGR of more than 5% during 2021-2026. Countries such as the U.S. and the U.K. account for a significant share of the market due to the increasing complexity of insurance products, heavy regulation of the sector, and demand for certain specialized advisory services such as life insurance.
In Germany, the market for insurance brokers is also growing, following the global trend. The revenue of insurance brokers in Germany has increased from 20 billion euros in 2015 to over 24 billion euros in 2021. The German market has some peculiarities, as the sector has a rather strict regulation and a strong dominance of the public sector in health insurance.
There are many insurance brokers in Germany, such as:
- Funk Group, one of the largest independent insurance brokers in Germany, specializing in commercial insurance.
- Württembergische Insurance, a German insurance company.
Recently, more and more online platforms have emerged that offer comparison services for insurance products. These platforms allow customers to easily reduce the cost of the insurance policies they normally purchase.
1.2 Global market
The insurance industry is present in every country in the world and has generated over $* trillion in life and non-life insurance premiums by ****:
Premium income of the global insurance industry Worldwide, **** - ****, in billions of USD Source: ****
In ****, life insurance premiums totaled USD **** billion and non-life premiums totaled USD **** billion. Between ...
1.3 German market
Insurance brokers depend on the insurance market, here is first an overview of insurance premiums and charges in Germany.
Insurance premiums by line of business in Germany Germany, ****-****, in EUR billion Source: ****
In the period from **** to ****, primary insurance as a whole in the German insurance industry recorded continuous growth. Total ...
2 Demand analysis
2.1 Overview of insurance companies in Germany
Insurance brokers depend on the supply of insurance, and there are many different types of insurance, each occupying a more or less important segment of the sector:
Survey in Germany on insurance policies taken out in the household Germany, ****, in % Source: VuMa Statutory health insurance remains the most widespread type of ...
2.2 Typology and preferences of insurance customers
Preferences Customers' preferences with regard to insurance and insurance brokers are extremely complex and are influenced by various factors. A recent chart clearly illustrates which aspects are of particular importance to customers. A key concern for customers is "investment security." With an impressive ** percent share, the chart shows that the security ...
2.3 Life insurance
Life insurance policies play a significant role in the German insurance market and are an important form of financial security and provision for the future for many people. These insurance products offer a variety of benefits and serve as a tool for long-term financial planning and security. A life insurance policy ...
2.4 Property and casualty insurance
Property and casualty insurance plays a prominent role in the German insurance market and is an essential form of protection against various risks and damages for many people. This line of insurance comprises a wide range of policies that offer protection against financial losses that may arise from unforeseen events such ...
2.5 Health insurance (PKV)
Private health insurance occupies an important position in the German insurance market and plays a crucial role in the health care and coverage of the insured. It offers an alternative to statutory health insurance and is aimed primarily at people with higher incomes or specific demands on their health protection.
In ...
3 Market structure
3.1 Definition of terms
Insurance broker
An insurance broker operates on a professional basis and undertakes the brokerage or conclusion of insurance contracts on behalf of the customer without being commissioned by an insurer or insurance agent. The broker is a fiduciary trustee of the customer and acts exclusively in the interest of the policyholder. ...
3.2 Insurance brokers and intermediaries winding up
At the beginning of ****, a total of ***,*** persons were registered in the insurance broker register of the Association of German Chambers of Industry and Commerce (***). **,*** of these were registered as insurance brokers in . Insurance broker companies could be counted in total **,*** in Germany.
The given graph shows a strong decrease in ...
3.3 Biggest players
Largest insurer
In ****, Allianz maintained its position as Germany's largest insurer with impressive premium income of about***.* billion euros. The company is headquartered in Munich and operates in various lines of insurance. It was followed in second place by Munich Re or Münchner Rück, which recorded a premium volume ...
3.4 Online sales
Online sales brokers have become much more important in recent years and have advanced to become an important pillar in the insurance market. Digitalization and changes in customer behavior have led to more and more insurance products being sold online. This development is also reflected in a table showing the share ...
4 Offer analysis
4.1 Overview of brokerage services for companies and individuals
Insurance brokers offer their services to companies and individuals. The aim is to find the best value for money in insurance for their customers.
Unlike brokers, they are not tied to a specific insurance company and therefore must provide the best offers to their clients without any conflict of interest.
They ...
4.2 Remuneration models of insurance brokers
There are various remuneration models used by insurance brokers when brokering insurance policies. Depending on the type of insurance and the individual needs of the customer, different remuneration structures can be applied.Here we rely on the information provided by Sebastian Kresse.
Brokerage consulting
The most common form of insurance brokerage ...
4.3 InsurTech - The digital revolution in the insurance industry
In recent years, the insurance industry in Germany has also undergone profound change, driven by the rapid development of new technologies. Insurtech, a compound of "insurance" and "technology," stands for insurance startups that use innovative technologies to revolutionize the insurance industry. These emerging companies focus on digitizing the traditional processes of ...
4.4 Development of highly specialized brokers
Insurance brokers are facing a gradual decrease in margins and a concentration of the sector, which makes activities increasingly complicated for independent brokers. Nevertheless, the development of insurance for niche markets allows some players to differentiate themselves and maintain comfortable margins. [***]
Among these niche markets, some are particularly promising, such ...
5 Regulations
5.1 Legal environment
The regulation and legal environment for insurance intermediaries in Germany are subject to a large number of statutory rules and regulations. Although there is no direct supervision of insurance intermediaries by the German Federal Financial Supervisory Authority (***) enable BaFin to monitor the sales activities of insurance companies. These include, in particular, ...
5.2 Threat of a commission ban
The possibility of an impending ban on commissions in financial advisory services has caused considerable unrest in the industry. In the market for insurance intermediaries in particular, there are fears that such a ban could have a significant impact on their business models and customer advice.
According to an article in ...
6 6.1 players
6.1 Positioning of the players
- Allianz Versicherung
- Aon Versicherung
- Marsh GmbH
- ERGO Group
- HDI Global SE
- Gothaer Versicherung
- Ecclesia Gruppe
- Funk Versicherungsmakler GmbH
- GrECo JLT GmbH
- Check24 Versicherung
- Verivox Versicherungsvergleich GmbH
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The insurance brokerage market | Germany
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