Gross-Net Margin: Who offers the best BI insurance

10/13/2022 – On behalf of the Wirtschaftswoche, the analysis company M&M examined several main tariffs in the BU sector on the basis of two sample customers. The gap between the payment and the maximum contribution was determined, as well as the best rates for a hypothetical resident and a mechatronics technician. Offerings from Interrisk, Canada Life, Condor and Allianz performed particularly well.

Who offers the best disability insurance (BI)? Morgen & Morgen GmbH (M&M) investigated this matter on behalf of the Wirtschaftswoche. Franke und Bornberg GmbH also recently addressed the topic of company accounting with a view to company stability (VersicherungsJournal October 12, 2022).

The rates with the best price stability for two clients in the sample

To determine the results of the best rates with premium stability, M&M submits two fictitious model clients. Both clients secure a BU pension of 1,000 euros per month. The analytics company only considered the highest fees in its overall BU ranking.

Client one is a 20-year-old automotive mechatronics engineer. He works predominantly (80 percent) physically. He is still employed, has a high school diploma and completed vocational training, has been smoke-free for ten years and will retire at age 67, at the end of the insurance.

Sample client two is a resident, age 25, also employed. He passed his Abitur and state exams, works 50 percent in the office and 50 percent in operations. He has not smoked for ten years and is also retiring at the age of 67.

Much cheaper doctor fees.

The attending physician can choose from a total of 28 rates, which M&M has rated four or five stars. Among these, Interrisk Lebensversicherungs-AG Vienna Insurance Group offers the lowest paying premium of EUR 33.91 per month with its “ABV XL” rate. However, the maximum monthly contribution, that is, the maximum increased contribution, for example, if the insurer has financial difficulties, is EUR 45.21, higher than that of the runner-up.

Canada Life Assurance Europe plc, branch for Germany, calculates a payment of 34.17 euros per month for its work disability protection, and is the only insurer that does not provide a modified maximum monthly contribution.

the other placed

The life insurance of 1871 aG Munich (LV 1871) offers the most expensive rate among the top BU rates with a premium of 65.50 euros and a maximum monthly premium of 95.25 euros in its rate “Golden SBU with AU, care package”.

The other classifieds are in descending order with their respective rates:

  • Stuttgarter Lebensversicherung aG – “BUV-Plus (Tariff 91)”,
  • Allianz Lebensversicherungs-AG – “Incapacity Policy BUU”,
  • Interrisk – “ABV XXL”,
  • Stuttgarter – “premium BUV-Plus (tariff 91A)”,
  • Allianz – “Disability Policy Plus OBUU (with AU)”,
  • Dialogue Lebensversicherungs-AG – “SBU-professional”,
  • Dialogue – “SBU-professional with AU”,
  • LV 1871 – “Gold SBU”,
  • Dialogue – “SBU-professional, extended conditions”,
  • Basler Lebensversicherungs-AG – “Basler BP”,
  • Dialogue: “SBU-professional with AU, extended conditions”.,
  • Zurich Deutscher Herold Lebensversicherung AG – “Disability Protection Charter”,
  • Dialogue – “SBU-professional, care option”,
  • Zurich Deutscher Herold – “Disability Protection Charter (AU)”,
  • Zurich Deutscher Herold – “BerufsKasko (AU)”,
  • Basler – “Basler BP with AU”,
  • Allianz – “Disability Policy Plus OBUUPS (with AU)”,
  • LV 1871 – “Golden SBU with AU”,
  • Dialog – “SBU-professional with AU and care option”,
  • Dialogue – “SBU-professional, care option, extended conditions”,
  • Dialogue: “SBU-professional with AU and care option, extended bed”.,
  • Basler – “Basler BP carefully”,
  • Basler – “Basler BP with AU and care”,
  • LV 1871 – “Golden SBU with care package”,
  • Inter Life Insurance AG – “L01N”,
  • LV 1871 – “Golden SBU with AU, care package.”

Physical labor means higher BI costs

Those who do heavy physical work are at a higher risk of not being able to do their job as they age. Consequently, the fees are calculated higher here. Automotive Mechatronics Technician has 33 of the great insurance products to choose from. Find the cheapest rate for him at Allianz with the “BUU work disability policy”. Here he pays 60.88 euros per month, maximum 79.06 euros.

Condor Lebensversicherungs-AG took second place with the “Basic C80” fare. The mechatronics technician pays 61.37 euros per month here. The maximum contribution from this provider is 87.67 euros per month. Find the most expensive rate at Interrisk and its “ABV XXL” rate. This costs 103.25 euros per month, with increases in contributions up to 137.66 euros.

The other providers and their fees are listed here:

  • Allianz – “Disability Policy Plus OBUU (with AU)”,
  • Condor – “comfort C80”,
  • Condor – “C80 comfort with AU”,
  • Inter-“L01N”,
  • Allianz – “Disability Policy Plus OBUUPS (with AU)”,
  • LV 1871 – “Gold SBU”,
  • Basler–“Basler BP”,
  • Stuttgarter – “BUV-Plus (Tariff 91)”,
  • Basler – “Basler BP with AU”,
  • Condor – “C80 premium”,
  • Dialogue – “Professional SBU”,
  • Basler – “Basler BP carefully”,
  • LV 1871 – “Golden SBU with AU”,
  • Dialogue – “SBU-professional with AU”,
  • Dialogue – “SBU-professional, extended conditions”,
  • Condor – “C80 premium with AU”,
  • Dialogue – “SBU-professional, attention option”,
  • Stuttgarter – “premium BUV-Plus (tariff 91A)”,
  • Basler – “Basler BP with AU and care”,
  • Dialogue: “SBU-professional with AU, extended conditions”.,
  • Dialog – “SBU-professional with AU and care option”,
  • Interrisk – “ABV XL”,
  • LV 1871 – “Golden SBU with care package”,
  • Dialogue – “SBU-professional, care option, extended conditions”,
  • Dialogue: “SBU-professional with AU and care option, extended bed”.,
  • Zurich Deutscher Herold – “Disability Protection Charter”,
  • Canada Life – “Disability Coverage”,
  • Zurich Deutscher Herold – “Disability Protection Charter (AU)”,
  • Zurich Deutscher Herold – “BerufsKasko (AU)”,
  • LV 1871 – “Golden SBU with AU, care package”,
  • Interrisk – “ABV XXL”.

Note the difference between the payment and the maximum contribution

Ultimately, however, choosing a rate with a larger difference between the payment and the calculated maximum contribution is a matter of individual advice and requirements. The goal is to ensure that the contributions, which are made over many years, are as stable as possible. In no case are you completely protected from the rises.

You can find more details about the Wirtschaftswoche evaluation here.

Michael Franke, CEO of Franke and Bornberg, also addressed the issue of the so-called gross-to-net spread in an invited article (8/31/2022). His conclusion is that only those who can choose between equally powerful rates with a comparable net contribution should opt for the lower spread.

Needs-based protection as well as product quality and insurer stability are more important than price, which ultimately has an impact on spread stability. The extreme values ​​of the gross-net spread would also disappear from the market, but the sales would still be based mainly on the net premium.

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