PKV commissions are to be capped in the future

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Private health insurance: capping of commissions planned

The commission payments for private health insurance have taken on such drastic proportions that the FDP, which is considered to be more friendly to private health insurance providers, now appears to be in favor of capping commissions. MPs from the CDU and FDP have commissioned the Ministry of Finance and Justice in Berlin to check what options there are for a statutory cover for the usual brokerage commissions after the contract has been signed.

Due to the considerable commissions that insurance intermediaries receive when customers switch to private insurance, intermediaries have a considerable interest in persuading insured persons to switch. In the past, spurred on by the waving commissions, there has always been at least questionable behavior when advising customers. In addition, the commissions had to be earned from the income of the private health insurance, which is reflected in corresponding premium adjustments. The members of the Union and the FDP apparently want to put a stop to this by having the Ministry of Finance and the Justice Department check that the commissions are capped, reports "Financial Times Deutschland".

Lush commissions in private health insurance encourage misconduct The government coalition plans to not only limit commissions to an acceptable maximum, but also to oblige intermediaries to pay back their commissions received longer than before if a customer cancels his contract. According to the "Financial Times Deutschland", a liability period of five instead of the previous two years is under discussion. So the legislature would kill two birds with one stone. On the one hand, the excess of commissions in the branch of private health insurers would be prevented, in which 14 to 18 monthly premiums are sometimes paid as rewards for a contract, which, with a monthly contribution of 200 to 300 euros in private health insurance, a commission for sales of 2,800 to Corresponds to 5,600 euros. On the other hand, the incentives that were previously responsible for mediators tending to persuade customers to terminate the contract as soon as possible after a contract was concluded would also be eliminated in order to collect multiple commissions, reports the "Financial Times Deutschland".

Commissions burden competitiveness and the insured. Although the government coalition is actually relatively open to switching from statutory health insurance to private health insurance and has also expressed this through the simplified switch between private health insurance and statutory health insurance since the beginning of the year, the excesses associated with this appear to be to be a thorn in the side of the commission payments also for members of the CDU, CSU and FDP. The CDU / CSU fiscal policy spokesman, Klaus-Peter Flosbach, told the Financial Times Deutschland that he was "very critical of developments". No wonder, because ultimately the horrendous commissions are at the expense of the privately insured and the competitiveness of the private health insurance. The immense rewards for recruiting new customers are ultimately borne by the health insured themselves, which is also reflected in the corresponding premium adjustments. This not only creates unnecessary costs in the health care system, but also incentives for misconduct for insurance intermediaries.

GKV advocates capping of private health care commission Statutory health insurance companies were also pleased with the Christian-Liberal Federal Government's push and advocated a capping of commissions. Because for the statutory health insurance companies, the high insurance premiums for sales represent a considerable competitive disadvantage. If an insurance broker has the choice between two equivalent products, he will always recommend to his customer that for which he himself receives the highest commission. "Because of the high commissions, the intermediaries do a lot of business if they persuade people to turn their backs on the solidarity community of statutory health insurance and switch to private health insurance," the GKV head association criticized the previous practice with commissions. (fp)

Also read:
Drastic reduction in PKV commissions
Switching to private health insurance is often not advisable

Image: Gerd Altmann / Gerold Meiners /

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