Hannoversche approaches people in the BU market

March 16, 2021 – Since December of last year, the Hanoverian occupational disability insurance can also be arranged through brokers. The life insurer is not only relying on the digital, but also on the human factor, writes biometrics expert Philip Wenzel. He sees the product, which is offered in four versions, as an alternative at a higher market level. Some things that are important to intermediaries could, however, be taken into account even better.

When the Hamburg indie rock band Tocotronic released the album “Digital ist better” in 1995, the catchphrase “digital” also stood for the promise of a better world that the 2000s would bring. Everything has to be digital now.

Philip Wenzel (Image: Doris Köhler)

With complex issues such as occupational disability (BU) insurance, this has its problems. And yet the entire market definitely wants to become more digital in order to occupy the interface to the customer.

Approaching people

The whole market? No! There are also insurers who unexpectedly take traditional approaches.

The Hannoversche Lebensversicherung AG is actually better known to intermediaries in BU insurance as the product counter offer that the customer has calculated directly on the Internet. The Hannoversche is already digital.

But now the company has probably recognized that insurance intermediaries also occupy an interface with customers. Namely the analog, human. And while the market is becoming more and more machine-oriented, Hannoversche Lebensversicherung is moving closer to people in the BU market.

BU insurance with four versions

It will be interesting to see how impartial the agents are towards their former competition. A first step (for me) is to address the insurance conditions as impartially as possible.

The BU insurance is offered in the versions “Basic”, “Plus”, “Comfort” and “Exclusive”. “Basis” is not a cheap variant here, it is literally the basis of the other tariffs. With “Plus” there is a so-called incapacity for work (AU) clause, which would last 18 months and which is independent of a simultaneous application from the BU.

Although the insurer is entitled to carry out an examination, both benefits are examined and approved independently. And it actually makes sense, as soon as possible, to apply for the benefit due to BU in order to get an unlimited recognition.

Immediate benefit and entitlement

The “Comfort” variant provides an immediate benefit of six monthly pensions in the event of a serious illness.

The “exclusive” version contains all the modules and an additional entitlement to term life insurance that can be drawn upon the birth or adoption of a child. It may amount to ten times the annual pension and not exceed EUR 200,000. In addition, risks such as smoking behavior, BMI or a new job are queried. Thus, the entitlement is not always useful.

The free agent finds similar actions with the competitors. A complete abandonment of the risk assessment and an expansion of the events would significantly increase the value of the building block compared to the market. The Hannoversche has already signaled a fundamental readiness here.

Individual staggered regulation

The actual General Insurance Conditions (AVB) always endeavor to be honest in their statements. It already says in the introduction that the BU insurance offers “protection against the economic consequences” (§ 1) of a BU. On the one hand, this is a matter of course; but there are, on the other hand, plenty of other examples that suggest that life would go on normally thanks to insurance.

All tariffs can also be agreed with an individual graduated regulation. The market standard is 100 percent performance and 50 percent occupational disability. For certain target groups that some colleagues advise, it might make sense to agree on a different season.

The disadvantage of any deviating scale rule, however, is that the burden of proof for each new level falls on the customer again. But it doesn’t hurt to have the opportunity for certain target groups, for example among the self-employed.

Various auxiliary services

All tariffs provide reintegration, rehabilitation, immediate and reorganization assistance. If the benefit event lasts more than three years and the BU ceases to exist at least twelve months before the end of the contract, the customer receives four monthly pensions or a maximum of 8,000 euros. With the rehabilitation aid, the insurer contributes to promising measures up to 2,000 euros.

In the event of an accident, the emergency aid immediately pays three monthly pensions and the reorganization aid supports the self-employed with six monthly pensions or a maximum of 12,000 euros when reorganizing. In my opinion, it would only be necessary to cover the costs of up to six monthly pensions instead of the six monthly pensions. But the Hannoversche shows that it is about helping the customer.

There is also a family discount that can also be drawn during the term. In addition, an extension option is offered, which can be used if the statutory retirement age of the DRV is increased.

Hannoversche subsidizes review by consumer protection

Another plus point is the fact that no risk assessment is required for subsequent insurance guarantees. So it is not only the state of health that is not checked, as is still the case with most of our competitors. The reinsurance guarantee can be drawn every five years, regardless of the event.

The follow-up insurance is limited to an annual pension of EUR 42,000 or 100 percent of the pension upon conclusion of the contract. That can sometimes be more than the usual EUR 2,500 limit on the market and sometimes less.

It is also positive that the customer does not have to report an improvement in health in the event of a benefit. The absolute highlight, however, is that in the event of a rejection, the Hannoversche would subsidize a review of consumer protection with 500 euros. In the interests of transparency, this is really to be welcomed and should find imitators.

Dynamism and retroactive claims

It is to be criticized that the contribution dynamics can only be reconciled with three percent and the benefit dynamics with only two percent. The brokerage market needs more choice here, as there are some equal opinions on how they should be structured on the market.

At the moment, the retroactive claims expire after three years. Anyone who later reports a benefit event will only receive the future BU pensions. The shrewd reader may think that the benefit case can then simply be set later, so that at least three years are paid retrospectively; but every deadline, no matter how long, is noticeable negatively and is rather unusual in the market.

During a phone call with the insurer, I was assured that this clause will be deleted in the future and will simply be taken over from the legal requirement.

Alternative at a high market level

The bottom line is that the Hanoverian occupational disability insurance is definitely an alternative at a high market level. In a few exceptions, the direct insurer still has to learn what it takes to compete and what is important to an intermediary, regardless of how relevant it may be.

If the service can keep up and the experience with digital processes is smoothly transferred into the world of brokers, then even biased brokers will soon lose their reservations.

The 30-year-old office clerk pays 50.32 euros (67.09 euros gross) up to the age of 67 with a performance dynamic of two percent and a pension of 1,000 euros. The mechatronics technician pays 82.33 euros (109.77 euros gross).

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