Jennifer Rudden
Research Lead Financial Services & Real estate
Insurance industry in Germany - statistics & facts
Germany has one of the largest insurance industries in Europe and is home to some of the largest insurers globally, such as Allianz Group and Munich Re. In 2022, Allianz was among the top five insurers globally in terms of market capitalization. Meanwhile, Munich Re was the largest reinsurance company by premiums written in 2021. Primary insurers - known as "Erstversicherer" - sell coverage to legal or natural persons, which are usually not other insurance companies, whereas other insurance companies are the primary client base of reinsurers, or "Rückversicherer". Insurance companies purchase reinsurance to reduce the amount they will have to pay out in claims, especially in the case of losses due to natural disasters. German insurers retained approximately 86 percent of the risk they took on through premiums and passed the remaining share onto reinsurers.
Which segments are most profitable for Allianz?
Allianz Group is one of the leading insurance companies worldwide, though not all of its revenue is generated in the insurance sector. Life and health insurance is their most profitable segment, followed by property and casualty insurance and then asset management. For instance, Allianz Real Estate is the largest property investor globally. This diversified approach is not uncommon among the world's biggest insurers. A prime example of this is Berkshire Hathaway, which generates revenues in a wide range of sectors from manufacturing and energy to insurance and investing.Increased M&A activity in the health insurance sector
The number of German health insurance companies has been shrinking in recent years, mostly due to mergers and acquisitions within the sector. As of January 2022, there were less than 100 health insurance schemes - known as "Krankenkassen". Every German resident is required to have health insurance, which means that this development affects each of the more than 83 million residents.
