German Insurance Association The German Life Insurance Market XII International Yalta Forum Volker Henke

German Insurance Association

The German Life Insurance Market

XII International Yalta Forum

Volker Henke


Letzte Aktualisierung 10/2011 fzi

Comparison to illustrate total investments

Savings of private households (2010) € 169 bn

Federal Budget 2011 € 306 bn

Investments of German insurers € 1 256 bn

Public debt in 2010 € 1 732 bn

Sources: German Stock Exchange (Deutsche Börse), Federal Ministry of Finance, GDV, German Federal Bank (Deutsche Bundesbank)Photograph: German Stock Exchange



Premium income of insurance lines in 2011Share as per cent, in EUR bnTotal of direct insurers: 178.2 bn €Reinsurance in 2009/10*: 34.7 bn €

Source: GDV (* Earned premiums net of reinsurance incl. additional charges)

56.7 bn €

34.7 bn €

86.8 bn €



4

Assets of the insurance industry by class of insuranceShares as per cent, EUR bnTotal: 1.279,5 bn €

Source: GDV 30.06.2011



5

Structure of investments of direct insurers(Life insurance in the narrow sense, health, property, casualty and accident insurance: total: 1,279,5 bn €)

Source: GDV 30.06.2011



Market shares of the 5 largest insurance

companies

10 largest insurance

companies

Property/casualty/accident 32.8% 46.2%

Life 38.1% 54.4%

Health 51.3% 73.3%

Reinsurance 85.1% 95.7 %

Source: GDVAs of 2010 (reinsurance : 2009)

Market shares of the largest insurance and reinsurance companies according to premium income



Captiveintermediaries“Pyramid selling”

BanksCredit card organizationsDepartment storesAnnexed distribution servicesTravel agencies

Single-tied intermediaries

EmployeesPart timeagents

Regularagents

Distribution via intermediariesDirect marketing

Multi-tied intermediaries

[Internet][Internet]

Part timeintermediaries

Regularintermediaries

Multipleagents

Brokers

Captiveintermediaries“Pyramid selling”

BanksCredit card organizationsDepartment storesTravel agenciesAnnexed distribution services

Distribution channels


Share of distribution channels in new business as % (as of 31.12.2009)

* Property/accident/third party liability +motor+legal expenses

48,6

37,5

6,93,9

3,1

Health(according to premium income)

31,1

6,5

9,5

5,0

47,9

Composite*(according to premiumincome)

Multi-tied agents

Single tied agents

Credit institutions

Direct marketing

Other42,0

29,5

23,6

2,6 2,3

Life(according to total premiums)




Number of intermediaries listed in the register of insurance intermediaries

Total of insurance intermediaries 263 300



Gainfully employed persons in the insurance sector as compared with other sectors (selection)

Ma

sc

hin

en

ba

u

Ins

ura

nc

e

ind

us

try

*)

Ca

r in

du

str

y(i

nc

l. s

ub

co

ntr

ac

tors

)

Ele

ctr

ica

l e

ng

ine

eri

ng

Ch

em

ica

l a

nd

p

ha

rma

ce

uti

ca

l in

du

str

y

Sources: VDMA, ZVEI, VDA, agv, DIHK, VCI

*) Insurance industry:

Employees subject tosocial security contributions 298 300+Self-employedintermediaries 263 300=Total 561 600

Me

ch

an

ica

l e

ng

ine

eri

ng



Hardly any dissatisfied customers in a comparison

between important service sectors

Source: Consumer Satisfaction Survey, Final Report, by IPSOS INRA (2007)

5

16.2

7.85.93.62.92.62.42.21.91.7

Air

Insurance

Water suply

EnergyBank

Mobile com

Gas suply

Postal service

Land line com

Public transport

Rail system

Dissatisfied customers in Germany as per cent according to EU consumer survey



Number of complaints to the Ombudsman

*) Rise in 2008 especially due to extended responsibilities of the ombudsman. As from 2008, complaints against intermediaries and complaints from small traders are covered as well.



Sign of confidence:Customers maintain their pension contracts

Declining cancellation rate despite the economic and financial crisis

2003 2004 2005 2006 2007 2008 2009 2010

(Premature cancellations as a percentage of contracts)

3.5

3.6

4.0

4.2

4.0 4.0

3.8

4.0

3.9

2011


Key figures of life insurance / pension funds

German Insurance Association 15

Life insurance in the narrow sense: Premiums broken down by type of business in 2011

Total: 83.2 bn €

*incl. occupational disability and long-term care insurance

30,1

9,1

21,25,1

9,3

Endowment insurance: 32.2%Unit-linked endowment

and annuity insurance: 14.5%

Annuity and pension insurance: 32.7%

Group insurance*: 13.2%

Supplementary insurance: 7.4%

Source: GDV



Structure of investments in life insuranceShares as per cent

Total: 734.4 bn €

Source: GDV


Letzte Aktualisierung 05/2012

17

Change of paradigms in life insurance …

*) Also includes unit-linked annuity insurance policies up to and including 2000

Source: GDV

Endowment insurance policies, annuity insurance policies and unit-linked life insurance policies (number)

0%

20%

40%

60%

80%

100%

1990 1995 2000 2005 2006 2007 2008 2009 2010 2011

Endowment (whole life) insurnace Annuity insuranceUnit-linked life insurance Unit-linked annuity insurance

German Insurance Association 18

Annuity contracts increasingly importantAnnuity contracts increasingly important



19

Premium income in life insurance in the broader sensePremium income in life insurance in the broader senseRegular premiums & single premiums in EUR bnRegular premiums & single premiums in EUR bn


Benefit payouts and gross written premiums (life Benefit payouts and gross written premiums (life insurance in the broader sense)insurance in the broader sense)2000 to 2011 - in EUR bn2000 to 2011 - in EUR bn



Germans need to catch up with respect to old-age provision

(Premiums for life insurance in euros per head of population in 2010); source: CEA

Sweden2 377 €

France2 223 €

Italy1 493 €

Belgium1 766 €

United Kingdom2 460 €

Germany1 066 €


Key figures of private health insurance



Development of premium income in health insurance

Source: Private Health Insurance

In b

n €

Total in bn €



Ample provision for old ageReserves for increasing age in EUR bn


EUR

bn



Private health insurance: Enhancement of supplementary insurance


Mill

ion

Number of persons insured in millions

Documents

German Insurance Association The German Life Insurance Market XII International Yalta Forum Volker Henke