Seven Things Insurers and InsurTechs Need to Know about the German Insurance Market
By Dr Robin Kiera
Thought Leader and Founder, Digitalscouting.de
There’s a simple rule for winning against the best soccer team in Germany, Bayern Munich: don’t play soccer against them. Play chess. The same principle also applies to incumbent insurers and InsurTech companies in Germany. The most successful InsurTechs in Germany don’t challenge the incumbents at their game – they invent new rules that make the situation unpredictable. This chapter sheds light on the playing field of incumbents and InsurTechs: the insurance market in Germany.
1. The German Insurance Market is a One-stop Shop
The German insurance industry, led by Allianz and followed by Talanx, Generali, R&V, and Debeka, is by far not the largest national market. Compared to the largest market in the world, the US$1.3 trillion market, Germany only generates US$208 billion annual revenue.
But here’s the good news: the German insurance market is primarily regulated on a national level. Unlike other large markets, there are few legal differences between the 16 different states. Once you enter the market anywhere, you are ready to go nationwide. It’s a one-stop shop.
2. Incumbents in Germany: a Success Story with Underlying Problems
Over the last four decades, incumbents in Germany have set impressive records. From 1980 to today, the yearly amount of premiums of direct insurers has risen from US$38 to 208 billion, and the proportion ...
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