Private health insurer’s record year for new business Central grows much faster than the industry
Private health insurer’s record year for new business
Central grows much faster than the industry
* New issued policies up by 65% to over EUR 204 million in 2008
* Number of insured persons up by 3.3% at around 1.7 million
Cologne – Despite the much more difficult legal framework for private health insurance resulting from the last reform of the German health sector, in 2008 Central Krankenversicherung achieved the best results for new issued policies in the Cologne-based health insurance company’s history – a history that stretches back nearly one hundred years. Annual premiums written amounted to EUR 204.1 million – around EUR 80 million more than the previous year (EUR 123.9 million). The number of persons insured increased by approximately 55,000 to nearly 1.7 million customers.
This means that Central’s new business grew much faster than the average figures for the private health insurance branch. By way of comparison, whereas Central increased its new individual insurance customers by around 34 per cent in 2008, the branch as a whole saw a drop of around 2.7 per cent. Without Central’s results, the decline for the branch as a whole would have been around 6 per cent, according to the company’s own calculations.
“The key to this extraordinary success in acquiring new business is our multi-channel strategy and our attractive product portfolio,” explains Central’s Chairman Dr Joachim von Rieth. Central recorded high two-figure growth rates in 2008 through Deutsche Vermögensberatung AG, Central’s own permanent sales force, the group sales forces, brokers and non-exclusive agents. “This makes us much better and more successful than the market. Strong, flexible distribution through our four channels gives us an enormous competitive advantage,” says Dr von Rieth.
2009 outlook
Central intends to increase its business from new customers still further this year. Because of the health reform and the more uncertain economic outlook, Dr von Rieth believes that the whole private health insurance branch will face serious challenges in 2009. However, he believes that Central is in a strong position structurally with its multiple distribution channels and its membership of the Generali Deutschland Group. “Following our record year in 2008, we are expecting to see above-average growth again in 2009. In order to continue to be a reliable partner for our customers, we are also further expanding our range of services.”
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