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.

Thanks to their healthy Future Surplus score, DEVK Kranken came out on top with 29.42%, Envivas Kranken a few percentage points behind in 2nd spot with 20.55%. Ergo Kranken took 3rd place with 16.95%.

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

  • Self-employed individuals

  • 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.

The awesome thing about RealRate is that they deliver totally fair and independent ratings, bringing together expert knowledge with really cutting edge artificial intelligence.

Looking at the AI in more detail, it’s 100% unbiased and uses only public data that’s been audited. RealRate are fair, explainable, and above all, they avoid any conflicts of interest.

1. DEVK Kranken
29.42%

2. ENVIVAS Kranken
20.55%

3. ERGO Kranken
16.95%

4. R+V Kranken
13.29%

9. ARAG Kranken
8.57%

13. INTER Kranken
7.36%

17. AXA Kranken
6.37%

18. LVM Kranken
6.32%

22. Gothaer Kranken
5.68%

25. UNION Kranken
5.25%

27. Allianz Kranken
4.99%

30. Debeka Kranken
3.33%

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