Germany’s insurance sector faces escalating challenges across all segments, according to Oliver Willmes, CEO of Ergo Deutschland. In an interview with Handelsblatt, Willmes, a business administration doctorate holder who assumed leadership of Ergo’s German operations at the beginning of the year, highlighted a rapidly deteriorating landscape for risk assessment and underwriting.
The core issue, Willmes asserts, is the increasing difficulty in insuring life itself, a concerning development with broad economic implications. To maintain the viability of insurance coverage in the long term, the industry urgently requires a combination of enhanced technological proficiency and greater cost-effectiveness. However, he emphasizes that technical upgrades alone are insufficient. A strengthened collaborative framework is essential, demanding closer partnerships between insurers, policyholders and the government.
Willmes points to a confluence of factors driving this seismic shift, particularly pronounced within Germany. The escalating frequency and severity of natural disasters, coupled with the evolving threat of cyberattacks, are significantly impacting risk profiles. Further complicating matters are sustained price pressures across multiple insurance sectors and the destabilizing influence of geopolitical uncertainty alongside accelerating technological advancements.
“Compared to previous years, the pace and force of these changes are markedly amplified” Willmes stated. This acceleration raises critical questions about the industry’s ability to adapt and the potential for systemic risk impacting broader economic stability. The implicit concern is that a reactive, rather than proactive, approach to these challenges could lead to a contraction of available coverage and potential cost burdens for both consumers and businesses, potentially necessitating greater government intervention and scrutiny of insurance practices. The call for enhanced cooperation suggests a recognition that the current market dynamics may require a fundamental reassessment of existing regulatory structures and risk management strategies.
