PKV expects increase in full insurance

Association of private health insurance expects further increase in full insurance

31/03/2011

The private health insurance (PKV) sector expects an increase in full and supplementary insurance. Although contributions from individual tariffs have risen sharply in the past year, private insurance providers have seen overall growth „high level“ recorded. This comes from an economic report of the Association of the German Insurance Industry.

Healthcare reforms spur on PKV
The current federal government has made every effort to lead the private health insurers out of the economic and financial crisis, and apparently with success. In order to keep the business figures at a high level, numerous statutory new regulations have been created in the course of the health care reform, which make it much easier to switch from the statutory cash register system to private health insurance. If, until the end of 2010, a worker subject to social security contributions had to have a constant above-average income for at least three years in order to be able to switch to private health insurance, the waiting period since the beginning of 2011 is only one year. The only condition: An employee only has to prove in the current year that his gross income exceeds the compulsory insurance limit. For the statutory health insurance, the new regulations mean one thing above all: the loss of high-income members and thus the gradual loss of social compensation in the statutory system.

High revenue growth of 5.8 percent
According to calculations by the German Insurance Association, the private health insurance industry grew by 5.8 percent in the single tariff last year alone. Thus, the revenue rose in 2010 to a whopping 33.3 billion euros. In a private health insurance were about 8.9 million health insurance last year. This corresponds to an increase of about one percent compared to the same period in 2009. Around 84,700 people signed a new contract in 2010. However, only half of the previous year's figure could be achieved here.

Gesamtverband der PKV expects further gains
As a result of the new regulations in the context of health care reform, the Federal Association of Private Health Insurers rejoices in a further significant increase. Association chairman Reinhold Schulte said: "Private health insurance is the insurance system of choice for more and more people in this country." This also applied to the past year, although the association complained about the reforms of former Federal Health Minister Ulla Schmidt. That was a „strong drag“ so the industry. However, the reforms of the black-and-yellow coalition have created the foundations that can predict a further increase in profitability. Although the association complained about the policy of Ulla Schmidt, could be recorded with certainty by the introduction of general health insurance at the beginning of 2009, a further increase. Due to compulsory insurance, self-employed persons were also obliged to have health insurance protection in 2009. This particular situation has given the industry a particularly strong growth in new members. Experts assume that about half of the new contracts in 2009 came about through the introduction of compulsory insurance. According to PKV CEO Schulte is likely to the business „in the current year 2011“ even better.

Retirement provisions in the opinion of the PKV secured
Old age provisions were also able to achieve a good result. The pot at the end of 2010 was around 155 billion euros. The financial cushion was 133.5 billion euros. In private nursing care, a result of 21.5 billion euros was achieved. In the opinion of the PKV Association, it shows that the financing system stands on stable feet. "This shows for another year in a row that our sustainable principle of capital adequacy works well and stably in the aftermath of the banking crisis," Schulte argued.

High profits in the field of supplementary insurance
PKV also achieved a significant increase in supplementary insurances. Health economists speak of one „real boom“. According to evaluations, an increase of around two percent was achieved here. A total of three million supplementary insurance policies were used by the end of 2010. Private supplementary long-term care insurance was very much in the interest of the insured. Here, the debate about the expected demographic change should have ensured a high insurance need. Approximately 201,700 new contracts were concluded in the field of private long-term care insurance. This represents a significant increase of 13.4 percent.

Profits through contribution increases?
If you take a closer look at the numbers, you will notice that many tariffs have been raised considerably. PKV customers had to spend about 3.7 percent more on private health insurance last year. In total, insured persons paid around 21.2 billion euros more for individual tariffs and additional benefits. Although premiums rose by 4.6 per cent in 2009, general consumer price inflation of 1.1 per cent (2010) has greatly maximized spending on consumers. As the private sector is also struggling with demographic change and rising health care spending, no increase in premiums will be ruled out by independent health economists in 2012. (Sb)

Also read:
Special right of termination for additional contributions
If worth the change in the PKV?
Consumer advocates warn against PKV low tariffs
Health insurance companies block insurance changes
PKV: No return for students in the GKV

Image: Benjamin Klack