Drastic reduction of PKV commissions

Insurance advisors plead for new PKV commission model

22/02/2011

Politicians have long been thinking about regulating the commission system when brokering new customers to private health insurance. Now, the Federal Association of Insurance Advisers for a clear settlement with drastic reduction of commissions has been expressed.

After the commissions for independent insurance intermediaries have steadily increased over the past few years, the Union announced last week a bill to set limits on the payment of commissions and increase the liability of intermediaries if policyholders prematurely resume their duties Change health insurance. As has now become known, the Federal Association of Insurance Advisers seems to prefer a similar model.

High commissions when taking out health insurance
The commissions paid when concluding a contract with a private health insurance (PKV) are now up to 18 monthly contributions of the insured, which is criticized by both the policy and the Federal Association of insurance advisors massive. After all, the costs are borne by the insured. In addition, the highest commissions are often to be fetched in the worst contracts, whereby the advice is sometimes consumed considerably considerably, said Stefan Albers, President of the Federal Association of Insurance Advisors. So not least in order to improve the advice, the commissions in private health insurance (PHI) should be significantly reduced, the expert recommends. Albers explained to the Handelsblatt that „reputable companies (anyway) often not more than six to seven months“ numbers. Like the policy, the insurance consultants demand a new remuneration system in the health market, which would be a term model with clear limitation of commissions also in the interests of the insured. Because low commissions pay off for the insured in the long term on more stable contributions, said Albers the initiative of the insurance consultants.

Commissions should cover a maximum of seven monthly contributions
However, according to the proposal of the Federal Association of Insurance Advisers, the restrictions on commissions previously envisaged by the policy are far from sufficient. The proposal of the CDU deputy Jens Spahn: „An upper limit for commissions of a maximum of twelve months would be good, even better would be nine months“, was still considered too high by the insurance advisors. The mediation of new policyholders should be paid a maximum of six or seven monthly contributions, demanded Albers on behalf of the Association. This would be about half what should be set in the new model of the Union. The policy and insurance advisors agree that „At the center of a consultation (...) the interest of the customer should (should) stand, not the commission interest of the mediator“, as Jens Spahn emphasized. Here the market needs rules to function in the interests of the people. Only a few private health insurance companies, such as Debeka, Huk-Coburg or SDK, have deliberately resisted the commission spiral. Overall, private health insurers are very divided in terms of paying commissions to advertise new customers. While there is a tendency to see the worst PKV rates with the highest commissions being sold, which is a pity for the insurance community as a whole, Albers said.

By limiting the commissions, however, not only should the advice be improved and money saved for the benefit of the customer, but also the courtship within the industry should be reduced according to the experts. So far, about 50 percent of new contracts in PKV annually go back on competitions of competitors. The other half of the new customers consist of former statutory health insurance, who switch to private health insurance, said the President of the Association of insurance consultants, Stefan Albers. The huge commission payments, which are due for most insurance changes, are in the opinion of Albers one of the reasons that numerous PKV contributions had to be increased significantly in the past. The high commission payments are not only „unreasonable“ , but also „a bad deal at the expense of third parties, the insured“, stressed Stefan Albers. (Fp)

Also read:
Change to PKV often not advisable

Picture: Gerd Altmann / Gerold Meiners