PKV distribution methods in places unserious

The distribution methods of the private health insurance are in places dubious

26/04/2011

The Chief Executive Officer of the German Health Insurance (DKV) Clemens Muth calls for a clear limitation of brokerage commissions for the full insurance of private health insurance. The final commissions for the negotiations would have to be clearly limited, because what „we see in the market, is in places ruinous“ So Muth in a Tagesspiegelinterview on the weekend. If a customer has taken out insurance, this is prompted by not a few brokers after some time to change the insurance in order to reapply a commission.

Politics wants to limit private health insurance commissions
The DKV boss explicitly welcomed in the interview that the policy wants to reform commissions for brokers. A limitation of brokerage commissions to a maximum of twelve percent was „absolutely right“. According to insiders, some insurance providers pay between 16 and 18 monthly contributions for a degree. According to the online platform „insurance Journal“ including insurance sizes such as „Barmenia“ or even the „Halle“. In the opinion of the head of the DKV, the market itself is not in a position to set the commissions on a reasonable basis. Therefore, now the policy is required to intervene here. At DKV itself, brokers are paid a maximum of ten monthly contributions according to an independent survey. Excessive compensation gives private health insurance brokers the financial incentive to enforce contracts with providers whose mediation fees are highest. In addition, many insurance agents try to encourage their customers to change PKV. A constant change between insurance companies jeopardizes the business model of private health insurance ", said Muth.

Extended liability for cancellations
In addition to capping the compensation models, Muth requires extended liability for canceled contracts as some brokers encourage clients to switch after graduation. Such methods are completely dubious and consumer-unfriendly. In order to prevent such practices, in the opinion of Muth's insurance agents should partially repay commissions received in a cancellation. As the DKV CEO explained: "If the customer changes within five years, the representative should have to pay back part of the commission."

In order to secure the profitability of the private health insurance, the private health insurance as well as the legal should negotiate with the doctors about benefits and fees. Nevertheless, the alleged differences in performance between the legal and private should be preserved. "We have serious funding deficits in the statutory health insurance, because it would not fit to raise the level of performance.“ If you want to get better health benefits, you should get private supplementary insurance, according to the DKV boss. (Sb)

Also read:
PKV commissions should be capped in the future
Drastic reduction of PKV commissions
Change to PKV often not advisable

Picture: S. Hofschlaeger