|
The insurance market in Germany is characterized by market concentration: The five biggest providers alone own a fifty per cent market share and the industry is under considerable competitive strain. The increased use of internet by the industry leads to a greater comparability and transparency of insurance performance as well as an effective new sales channel. Further changes result from the market entrance of providers emerging from outside the industry, for example Tchibo. The practice of bundling insurance with other products is also strongly on the rise.
Environmental climate changes also have a large impact on the insurance industry unscathed. In 2007, more than 400 new climate change related insurance products have been launched in the German market, in response to increasing damage done by flooding, wood fires and storms. The is also the development of “cancellation of insurance “ a phenomenon increasing observed after 9-11-2001; which dictates that certain risks are no longer covered by insurances.
Last but not least, the collapse of the pension insurance system leads to extensive changes in regulation and offers in the areas life insurance and private as well as company pension schemes.
|
