11/25/2020 – Accident insurance is expected to earn even more in 2020. The loss rate is falling in the wake of the corona crisis. But the Covid-19 virus could cost the industry dearly. Among other things, a specialist conference dealt with further inclusions.
The consequences of Covid 19 disease should, according to Dr. Sonja Possin cannot be included in the accident insurance.
“Even if the recognition of the statutory accident insurance as an occupational disease in the medical field arouses desire and creates market pressure, one must refrain from it,” said the medical department head of the E + S Rückversicherung AG at the 14th MCC specialist forum “Accident Insurance”.
- MCC specialist forum on accident insurance (screenshot: MCC). Click image to enlarge.
Further risks for accident insurance from Covid-19
“There are already many reports of long-term effects and I see the risk that we will have to talk about a flood of consequences that can hardly be objectified.” She fears that Covid-19 will end for insurers like borreliosis with a tick bite. There, too, clinical pictures such as fatigue or reduced performance can hardly be assessed.
With a vaccination against the pandemic virus, it is difficult to prove a disease and its consequences anyway. “We know that pandemics are often ruled out, but we don’t know every single clause,” she said from the perspective of the reinsurer to the primary insurer offering it.
There is generally growing pressure to insure further risks in order to revive the stagnating market with old customers. Especially in combination with a reduced health check, which seems necessary for digital offers, she considers many other inclusions to be problematic.
For example, the inclusion of mental disorders is being discussed louder and louder. In view of the fact that 13 percent of the female and six percent of the male population suffered from depression, she fears an increasing disability here.
The crediting of previous illnesses is declining
The trend towards an increasing participation share can also be observed in the market. There are more and more products in which pre-existing illnesses are only considered from 50 percent. 14 insurers would offer 27 tariffs in the brokerage market in which participation is waived.
“We are observing the trend in the markets of exclusivity to adapt to the brokerage market and to expand participation.” The basis for this data was 193 of Morgen & Morgen GmbH examined tariffs for a sample coverage with 50,000 disability sum and a progression of at least 200 percent.
Jutta Jakobs, Head of Accident / Travel Claims at HDI Insurance AG, reported, among other things, that among older victims, a contribution of “perhaps 25 percent” was objectionable. “Without participation, this has a huge financial impact on older people. That goes into the progression quickly. “
Good grades from Stiftung Warentest help the DFV
Stephan Schinnenburg, board member of Deutsche Familienversicherung AG (DFV), said, among other things, that the seal of the Stiftung Warentest foundation was important in the predominantly digital sale of his company. Here, the participation rate in the tariff evaluation is an important characteristic.
Possin recommended that if there was a high participation rate, “not to slim down at the same time during the risk assessment”. She often hears from direct insurers that the effects of the underwriting fizzle out over time.
Schinnenburg had reported that medical diagnoses could be made according to the classification system ICD International Statistical Classification of Diseases and Related Health Problems recognize and regulate. Concomitant and previous illnesses did not play a role. Artificial intelligence could be used with IDC.
Thinking innovations in terms of damage
Jakobs counts “premium packages” among the challenges in the market. “Innovations can be developed better without pests, but some candy turns out to be difficult in claims processing,” says the HDI expert.
One such innovation is the co-insurance of the psychological consequences with a flat rate of 3,000 euros for robberies, hostage-taking and kidnappings. The prerequisite is that this offense is reported to the police and recorded. Here she named cases in which fraud is suspected.
The additional module, which provides two-thirds of the breast removal due to cancer, is also an expensive product. “And it is not nice to discuss with customers that two thirds were not removed because the operation is usually conserving the breast,” says Jakobs.
Gaps in statutory accident protection when working from home
Torsten Schersching from the Württembergische Versicherung AG drew attention to the fact that homeschooling is not covered by statutory accident insurance protection. Since only 29 percent of children are privately insured, this offers approaches for distribution.
The statutory accident insurance coverage for working from home also shows large gaps for employees. Every year there are a million occupational accidents, many of which can currently happen at home. But then they are not insured according to current case law.
After numbers of the General Association of the German Insurance Industry eV (GDV) and estimates by E + S, the number of accident insurers has decreased in the last ten years from 135 (2011) to an expected 123 (2020). The contributions will increase by an estimated 0.6 percent in 2020 to 6.7 (6.66) billion euros, reported Mariko Wassy, Head of Technical Underwriting at E + S.
Number of accident policies is falling
The number of contracts has decreased to around 25.7 (25.8) million – in 2011 it was 27.3 million. The claims expenditure for the financial year should fall by around two percent to 3.3 billion euros in 2020, thereby improving the claims ratio again.
According to the figures, the annual loss ratio has been between 50 and 60 percent for years. It also expects a lower combined ratio of around 75 percent.
With aging portfolios and salespeople in mind, the industry needs to think about access to new, young policies. After all, senior citizens cause greater damage, so young people will need it to improve the balance in the collective. Only 2.5 percent of the new entry would come via the direct channel.
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