The German private insurance industry is an important completion to the German public health insurance, providing high level health services. There is an intense competition among the private players with respect to products and premiums. From a customer’s point of view there are two important requirements when choosing a health insurer. First, the health insurer should be financially stable to be able to provide competitive products and services in future. Second, premium increases should be limited. In the RealRate approach both these aspects are covered by the Economic Capital Ratio. Insurance brokers, advising their customers on the choice of the health insurer are required to compare health insurers before giving advice. Our ranking provides such an independent benchmark analysis.
Measuring Financial Health.
To quantify a health insurer’s financial health we use the Economic Capital Ratio. It is simply the company’s available capital divided by its assets. This ratio enables us to rank and compare insurers of different size. Indeed, it is not the size that matters, but whether the insurer has the financial means to be resilient in adverse situations. Computing the economic capital of a health insurer is the core of RealRate’s computational model. Picking the most important information from the annual business reports, we transform those accounting values to economic market values. This approach is especially important for German health insurers since their statutory accounting relies on book values often being quite different from fair market values. In addition, their business model and corresponding accounting is difficult and deviates from other industries. The Economic Capital Ratio is a forward-looking key ratio capturing financial strength in just one figure.
Around 11% of Germans take out a private health insurance policy. You can only sign up if you fall into one of these categories:
If you earn over €60,750 per year
If you earn under €450 per month
Students aged between 23-30
Civil servants (as insurance is subsidized by the employer)
There are just over 40 companies offering private health insurance and the market is worth a colossal €49 billion.
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1. DEVK Kranken
2. Mecklenburgische Kranken
3. ERGO Kranken
4. Württembergische Kranken
5. ENVIVAS Kranken
6. R+V Kranken
8. Provinzial Kranken
9. HanseMerkur Kranken AG
10. ALTE OLDENBURGER Kranken AG
11. uniVersa Kranken
12. HALLESCHE Kranken
13. INTER Kranken
14. MÜNCHENER VEREIN Kranken
15. ARAG Kranken
17. LVM Kranken
18. Concordia Kranken
19. Süddeutsche Kranken
20. Barmenia Kranken
21. Freie Arzt- und Medizinkasse
22. SIGNAL IDUNA Kranken
23. Gothaer Kranken
24. Versicherer im Raum der Kirchen Kranken
25. AXA Kranken
26. Continentale Kranken
27. UNION Kranken
28. NÜRNBERGER Kranken
29. Bayerische Beamtenkrankenkasse
30. DKV Deutsche Kranken
31. Debeka Kranken
32. Allianz Kranken
33. Generali Deutschland Kranken