DKV stops PKV low rates

German health insurance AG stops PKV low tariffs

06/21/2011

The German health insurance AG (DKV) wants from December 1, 2011 in the game of Einsteigertarife no longer join. Such entry-level tariffs are usually very cost-effective and rise faster in later years. Partly cheap rates are offered under 100 euros, the health services, but a high proportion of cost contain. According to a press release, they want to say goodbye to the low-cost segment in the future and focus instead on premium and comfort tariffs.

Exit logical consequence
The step is one „logical consequence of experience“ with such PKV tariffs. Because such tariffs would attract partially insured persons, which do not belong in the view of the DKV chairman Clemens Muth into a private health insurance, quoted the „Financial Times Germany“ the PKV boss in her current issue. Now you want that „Sharpen profile towards comfort and premium rates“. The DKV based in Düsseldorf is part of the ERGO Group.

It was not until April of this year that Dr. Muth demanded a clear limitation of brokerage commissions in full insurance. Because some customers are promptly after some time by their insurance brokers to change again the provider. Brokers can reap the reimbursement of a four-digit amount at the time of sale.

At the start of the low-cost entry-level tariffs, the insurance company had the hope that the insured persons concerned would subsequently opt for higher-value tariffs. This hope has hardly been confirmed, so Muth. All sales partners have already been informed in writing about this far-reaching step. From the first of December 2011 no cheap entry tariffs will be offered.

Step should be trend-setting
DKV is thus one of the first private insurers to recognize that the industry as a whole does not do any good by selling fares at bargain prices. In part, such tariffs are subject to very high commissions for the brokers, provide less health services than the statutory health insurance and produce in the aftermath even dissatisfied customers, because they are later faced with high premium payments. Therefore, this step is a correct one and should be trend-setting for other private health insurance companies. In the DKV are currently about 800,000 civil servants, self-employed, freelancers and employees private health insurance. Thus, the DKV is the second largest provider of private health insurance in the German market. (Sb)

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