Canada    FinTech Guide    Chapter 13    Germany

13. InsurTech
Germany  Germany

InsurTechs are getting more and more popularin Germany. The political und social climate is positive.

Legal Affairs

The insurance business is regulated in the law on the Supervision of Insurance Undertakings (Versicherungsaufsichtsgesetz – “VAG”) and the industrial code (Gewerbeordung – “GewO”). The data protection and money laundering regulation also has to be complied with.

Insurtechs are subject to insurance supervision if they conduct insurance business. In order to do this, undertakings domiciled in Germany need a license from the competent German supervisory authority, in normal cases the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – “BaFin”). Insurance intermediaries or insurance consultancy services require a different licence usually from their local chamber of industry and commerce (Industrie- und Handelskammer – IHK).

A license for conducting insurance business costs 10.000,00 Euros. A license to operate as an insurance intermediary or consultant and to get registered are about 300 Euros.

Insurance business: Authorisations may only be granted to public limited companies (Aktiengesellschaften), mutual societies (Versicherungsvereine auf Gegenseitigkeit), public corporate bodies and institutions under public law. The requirements for an authorisation can differ depending on the line of business being pursued. Furthermore, certain insurance classes cannot be bundled together and offered by an undertaking. A sufficient documentation has to be submitted as part of an application for authorisation to conduct insurance business, which includes a business plan. Furterhmore the company needs a sufficient business organization, the persons who effectively run the undertaking or perform key tasks have to be sufficiently qualified and the company must have sufficient financial resources. Additionally, the provisions on non-insurance business must also be observed in the application process. Insurance intermediaries and consultants:Insurance intermediaries and insurance consultants need a clearance certificate, an extract from the central business register, a certificate in tax related matters from the tax authority, an extract of the record of debtors and of the insolvency register, a professional liability insurance and proof of expertise.

Economic Conditions

In 2015 the insurance sector had a volume of about 1,5 billion Euros. Currently more than 30 InsurTechs are operating in the market.

Contributing Authors

Schalast Rechtsanwälte mbB

Andreas Walter
Frankfurt, Germany

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Chapter Index:

1. Payment Services / Mobile Payment

2. Asset and Portfolio Management

3. Consulting and Broking Services / Robo-advisory / Auto-trading

4. Trading Platforms / Social Trading Platforms / Signal Following

5. Crowdfunding / Crowdinvesting / Crowdlending

6. Virtual Currency - Bitcoin

7. Loan Services / Factoring / Loan Broking / Finetrading

8. Online Banking Services

9. Analytics and Research / Data Management / Risk Management

10. Accounting

11. Identification

12. Online-pawning

13. InsurTech

14. RegTech

15. Initial Coin Offerings (ICOs)

The information in this guide provides a general overview at the time of publication and is not intended to be a comprehensive review of all legal developments nor should it be taken as opinion or legal advice on the matters covered. It is for general information purposes only and readers should take legal advice from a Multilaw member firm.

Publication Date: 1 May 2018