Insurance industry in Germany - statistics & facts
Germany has one of the largest insurance industries in Europe and is home to some of the largest insurers globally, such as Allianz Group and Munich Re. The size of the German insurance market has grown steadily over recent decades and exceeded 230 billion euros in 2022. in In 2024, Allianz was among the top five insurers globally in terms of market capitalization. Meanwhile, Munich Re was the largest reinsurance company by premiums written in 2022. Insurance companies purchase reinsurance to reduce the amount they will have to pay out in claims, especially in the case of losses due to natural disasters. German insurers retained approximately 83 percent of the risk they took on through premiums and passed the remaining share onto reinsurers.
The German insurance market is likely to continue performing well, even if the economy detracts in the near future. Many insurance types, such as health and auto, are mandatory, thus the demand is unaffected by economic downturns.
Which segments are most profitable for Germany's largest insurer?
Allianz Group is one of the leading insurance companies worldwide, though not all of its revenue is generated in the insurance sector. Life and health insurance is the most profitable segment for Allianz, followed by property and casualty insurance and then asset management. This diversified approach is not uncommon among the world's biggest insurers. A prime example of this is Berkshire Hathaway, which generates revenues in a wide range of sectors from manufacturing and energy to insurance and investing.Increased M&A activity in the health insurance sector
The number of German health insurance companies has been shrinking in recent years, mostly due to mergers and acquisitions within the sector. As of 2024, there were less than 100 health insurance schemes - known as "Krankenkassen". Every German resident is required to have health insurance, which means that this development affects each of the more than 84 million residents. This development could impact the level of competition in the market and leave consumers with fewer options to choose from.The German insurance market is likely to continue performing well, even if the economy detracts in the near future. Many insurance types, such as health and auto, are mandatory, thus the demand is unaffected by economic downturns.
