Germans are the most insured people in the world. According to information from various sources, for every person living in Germany, including babies, there are 6 insurances, which cost the Germans almost € 2000 a year. Residents of this country do not like to take risks and try to protect themselves as much as possible. Insurance in Germany is characterized by the availability of offers to cover almost any, even the smallest, risks. Some of its types are voluntary, but there are also those that are mandatory.
Insurance market in Germany
Insurance activity in Germany has peculiarities that distinguish it from similar practice in other countries. In particular, it is very important for Germans to insure their property in the first place. It should be noted that 51% of the population of Germany has the relevant policies. However, this phenomenon does not contradict global trends.
The share of personal insurance, where the object is a person's life and / or health, accounts for 37%. As for health insurance, in 2007 a law was passed, according to which it is not allowed to live in Germany without such a policy.
The German insurance market is tightly controlled by the state. The activities of all insurance companies, both national and foreign, are subject to state insurance supervision, which is carried out by the Federal Office of the BAV.
The insurance market in Germany is divided between 39 groups engaged in this type of activity. More than half of the total insurance premium, or rather 51%, is collected by 10 of them. The undisputed leaders include:
- insurance group "Alliance" - it owns a market share exceeding 20%;
- concern "Gerling";
- insurance company "Colony".
Social insurance system in Germany
Most of the country's population is involved in the system of state social insurance, which is compulsory. In accordance with German law, each employer must insure the employee against possible social risks, such as those associated with occupational injuries or harmful working conditions.
The social insurance system includes 5 types of it:
- state health insurance. Carried out through state medical funds;
- compulsory state insurance in case of need for care due to old age or illness. Also carried out through state medical funds;
- job loss insurance. Carried out by the federal labor department;
- employee pension insurance. Carried out by federal or state insurance companies;
- compulsory state insurance against the consequences of an industrial accident.
The financial basis of this system is social insurance funds, which are replenished by contributions from insured people and are based on the principle of mutual assistance.
Types of insurance in Germany
Let's take a closer look at the main types of insurance available to residents of Germany:
- health insurance (German Krankenversicherung) is one of the most important types. It can be both public and private. Most people living in Germany prefer public insurance. It is especially relevant for those who have created a family and are raising children. The fact is that the cost of services of private insurers is quite significant. In addition, they practice charging for each member of the family, while the state policy is usually designed for the entire cell of society.
If you wish, you can also take out additional types of insurance against risks associated with the need to cover the costs of hospital stay and when visiting a doctor. In particular, you can conclude a so-called dental insurance contract. It will cover a number of costs in the event that a person is forced to put crowns or dental implants;
- loss insurance (called Haftpflichtversicherung in German). Its variant, called Private Haftpflichtversicherung, covers the amount of damage unintentionally caused by the policyholder himself, his children and animals belonging to him, to third parties. It is not necessary to purchase such a policy for residents of the country, as well as for nationals of other states staying in Germany.
There is another type of this insurance - Kfz-Haftpflichtversicherung. This policy is intended to cover damage caused in the course of a car accident. All vehicle owners are required to purchase it, that is, not only native Germans, but also citizens of other states living in Germany and having cars;
- life risk insurance (Risikolebensversicherung in German). This insurance is relevant for people who have outstanding loans and who are the only breadwinners in their family. With such a policy, the social unit that has lost its breadwinner will not be on the street due to the confiscation of housing in order to pay off the loan debt, and will not be able to change its usual way of life;
- disability risk insurance (Berufsunfähigkeitsversicherung). In Germany, approximately one in four employees cannot perform their work until they retire due to disability caused by an accident or illness. Therefore, the sooner the policy is purchased, the lower the risk of refusal by the insurance organization due to the presence of pre-existing diseases and the lower the monthly premium. This insurance is optional;
- helplessness insurance (German name Pflegeversicherung). This policy is directly linked to health insurance. That is, a person who has taken out health insurance, purchasing care insurance, is automatically registered with the same state treasury. The gross salary contribution is 2.02%, half of which is paid by the employer. Every person living in Germany, including an immigrant, is obliged to issue such a policy;
- legal protection insurance (Rechtsschutzversicherung). According to statistics, every second household in this country is faced with the need for their own protection in the legal field. To do this, they seek to resort to the services of a lawyer. However, in the absence of a Rechtschutzversicherung policy, an experienced specialist is likely to refuse a potential client, since it is possible that the case will be lost and the citizen, having become bankrupt, will not be able to pay the lawyer for the services rendered to him.
However, it is possible to turn to the state for help so that it will bear some of the costs. Of course, officials will meet the needs of a poor citizen halfway. But there is one point: if within 4 years from the end of the trial, the financial situation of the recipient of state aid improves, he will be asked to compensate for the expenses made from the treasury. Nevertheless, this option also has a right to life, especially when it comes to Germans, who find it difficult to master the additional monthly payments for legal protection insurance. It is not necessary to purchase this policy;
- household insurance (Hausratversicherung). This type of insurance will compensate for damage resulting from various force majeure circumstances, including fire, natural disaster, theft, vandalism, etc. It is not necessary to issue it
These are just the most important German insurances. However, there are also minor, sometimes very exotic risks, for example, luggage insurance (attention!) For a scuba diver, medical insurance for animals (horses, dogs and cats), bicycle insurance, etc.
Features of insurance registration in Germany
As an example, consider the nuances of obtaining a health insurance policy - one of the most important for both Germans and foreigners.
- To obtain such a policy, residents of Germany must contact the most convenient public or private specialized organization Krankenkasse - the health insurance fund. The services provided by such institutions are 95% absolutely identical.
It may happen that there is not enough money in the health insurance fund. Then she will announce an additional fee, which cannot be waived. This inconvenience is offset by the small size of this fee - only 1% of income.
- Foreigners can take out insurance at the social security agency at their place of residence. There is also the option of contacting private insurers. However, it is necessary to take into account one nuance: German medical institutions do not cooperate with insurance companies registered in non-EU countries.
Therefore, it makes sense to resort to the services of exclusively German insurers, without responding to the tempting offers of domestic organizations operating in this segment of the financial market.
- To get an insurance policy, a foreigner needs to register at the place of residence in Germany and open an account with a German bank. Let's see how this can be done in more detail:
- obtaining registration. To register at the place of residence, a citizen of another country must apply to a state institution called the Office of Citizens' Affairs (German Bürgeramt). Moreover, you should immediately go to his district office, and not to the central city office, since there are fewer queues. You will be asked to fill out a special form and indicate your passport details in it. You will also need to provide information about the place of residence. If you are renting an apartment, you will need confirmation from the landlord;
- opening an account in a German bank. It should be noted that carrying out this procedure will require the personal presence of a foreigner at the branch of a financial institution. Perhaps this is the only inconvenience created by German pedantry, since a citizen of another state will only have to submit the necessary documents and find out the account number. True, you will have to visit the bank again - this time in order to get a plastic card, since it takes time to produce it.
What documents are required to obtain insurance
To obtain an insurance policy in Germany, a Russian will need the following papers:
- international passport with an open visa;
- copy of a Russian passport;
- a copy of the document for renting housing or its ownership;
- documents confirming:
- address of stay in Germany;
- origin of funds.
All these documents are submitted to the town hall for registration and to the bank to open an account. But the insurance company must be provided:
- an application for a policy;
- a document confirming registration at the place of residence;
- bank current account number;
- current international passport.
Insurance cost
Many readers intending to apply for a policy are interested in the cost of insurance in Germany. For ease of perception, this information is placed in the form of a table:
| Insurance type | Price |
|---|---|
Krankenversicherung - health insurance | Monthly installment - 55.5 euros |
Haftpflichtversicherung - loss insurance | 50-100 euros per year |
Risikolebensversicherung - life risks insurance | Full cost for men - from 55 to 540 euros; for women - from 35 to 333 euros (approximate data) |
Berufsunfähigkeitsversicherung - disability risk insurance | Monthly installment - 30-60 euros |
Pflegeversicherung - helplessness insurance | Monthly installment - 20-90 euros |
Rechtschutzversicherung - legal protection insurance | Monthly installment - 10-15 euros |
Hausratversicherung - home insurance | Monthly installment - from 3 euros |
List of the most popular insurance companies in Germany
The insurance sector of the financial market of this country is represented by organizations that have the status of a public-law (state) insurance company, a mutual insurance company and a joint-stock insurance company. In this regard, a natural question arises as to which German insurance company is most popular among the residents of Germany. We will name only the most popular German institutions of this profile as of September 2021:
- Coracle;
- Allianz SE;
- Munich Re;
- Talanx AG;
- R + V Versicherung.
Finally
The German insurance market is developing dynamically. The volume of contributions received annually increases by 10%. Personal insurance occupies 37% of the market, while health insurance in this country is less popular - 12%. Well, the undisputed leader of the German insurance market is property insurance, which accounts for 51% of the total volume of insurance payments.
