Germany’s insurance sector is facing escalating challenges across all areas, according to Oliver Willmes, CEO of Ergo Deutschland. In an interview with the Handelsblatt, Willmes, a business economist, highlighted the increasing difficulty in insuring life risks and underscored the urgent need for the industry to adapt to a rapidly changing landscape.
The core of the issue, Willmes stated, lies in a confluence of factors significantly accelerating the pressures on insurers. He pinpointed the intensifying frequency and severity of natural disasters, alongside the burgeoning threat of cyberattacks, as key drivers. These are compounded by rising claims costs across multiple sectors and the broader influence of geopolitical instability and technological disruption. “The pace of change is now considerably faster than in previous years” he emphasized.
While technical expertise and increased cost-efficiency are deemed essential for the industry’s long-term viability, Willmes stressed that these alone are insufficient. He articulated a requirement for deeper, more collaborative partnerships involving insurers, policyholders and governmental bodies. This suggests a potential shift away from the traditionally independent operations of the sector, raising questions about the role of regulatory oversight and potential public-private initiatives.
The increasing burden on insurers is likely to translate into higher premiums and potentially more restrictive coverage options for consumers and businesses. Critics argue that the current situation highlights a systemic vulnerability within Germany’s risk management framework, demanding a thorough re-evaluation of how economic resilience is cultivated and maintained. The sector’s response and the government’s role in facilitating adaptation, will be critical in mitigating potentially destabilizing effects on the German economy.