Pension provision offers German insurers “considerable potential” as companies focus more on employee benefits, according to WTW Germany.

WTW said that against the backdrop of demographic change, the provision of pension schemes and health management is becoming a clear competitive advantage.

“However, many firms still do not communicate enough about their benefits. Employers also recognise a need to support employees during their transition into retirement,” WTW head of retirement, Hanne Borst, said.

She continued: “For insurers, these areas offer considerable sales potential.”
WTW stressed that digital and modern products that reflect the realities of people’s lives today have become important.

“Insurers have clear, unique selling points when it comes to benefits. They should highlight these more effectively. Furthermore, the administrative burden and complexity for employers and employees need to be reduced,” Borst said.

Indeed, Willis head of broking for Germany and Austria, Lukas Nazaruk, added that adaptability and resilience are becoming “key competencies” for insurers to support businesses as a “reliable partner in an increasingly dynamic environment”.

According to the results of a survey conducted at the WTW Insurer Summit, intense pressure on profitability due to a softening insurance market and a shortage of skilled workers represent the greatest challenges for insurers currently.

Fifty-eight per cent of respondents find it difficult to remain profitable in the face of falling premiums and fierce competition. Forty-two per cent see the shortage of skilled workers as an urgent problem.

In third and fourth place, closely followed, are the impact of geopolitical risks on their own business model (31 per cent) and the use of artificial intelligence (AI) across the entire value chain (28 per cent).

WTW found that many insurers are driving forward the use of AI within their own organisations – yet companies are still in the early stages.

According to the survey, for 88 per cent of insurance companies, AI merely provides an initial framework for underwriting. Experts then handle the remaining processes and assessments.

At 12 per cent, AI-supported analyses and human expertise are already on a par.

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