Industry get-together DKM: Insurers and brokers are finally getting close again

Brokers deep in conversation, crowded aisles and a familiar hall noise in the air: The insurance industry has come together in Dortmund for the brokerage fair DKM - and after two years of digital and hybrid solutions is continuing as before.

Around 8,800 visitors are expected this year in the Westfalenhallen, where brokers and the industry meet and insurers recruit new intermediaries between stands equipped with screens and competitions.

The atmosphere is upbeat: Many visitors are relieved to finally be able to exchange ideas on site again, because the brokerage fair is one of the most important events in the industry, which is celebrating its 25th anniversary this year.

However, the joy of returning to the trade fair in person does not distract from the challenges that the industry is facing.

Inflation, climate change, geopolitical crises: Uncertainty and concern about rising deductibles and premiums among insurers' customers are great.

"The more difficult times are, the greater the need for advice," says Volkswohl-Bund board spokesman Dietmar Bläsing, when he met board colleagues from other market participants in a panel discussion - jokingly called "elephant round".

He sees above all the intermediaries in the duty to advise.

"The biggest challenge is making people understand that prevention is still important," says Bläsing.

Among others, he received approval from Christopher Lohmann, CEO of HDI Germany.

The adjustments that are necessary with a view to inflation must be actively supported by the intermediaries.

"It is important to adjust the sums insured so that there is no underinsurance," says Lohmann.

Inflation is forcing new coverage concepts.

The insurance directors do not expect worries about a wave of layoffs because prices are rising and unanimously give the all-clear.

"We are currently not experiencing a wave of cancellations," says Zeliha Hanning, head of Württembergische Versicherung and the first woman to have had a say in the "Elephant Round".

Towards the end of the year, however, she expects competition to become more intense - especially in car insurance, where premiums are expected to rise particularly steeply.

Nevertheless, she considers it unlikely that customers will migrate to cheaper direct insurers on a large scale.

"Price is not the feature that is most important to all customers," says Hanning.

Rather, the need for competent advice is great.

Cautious optimism

Despite the clear challenges, cautious optimism hangs in the hall air.

For many insurers, the pandemic has been a catalyst for greater adaptability, which they are now benefiting from.

Allianz insurance boss Frank Sommerfeld tells the FAZ that his company has been working on accelerating lengthy development and adjustment processes.

"We have put together teams in which people from all areas work directly together," says Sommerfeld.

"We are in a permanent loop and are considering together how to deal with new challenges." Customers could also be relieved directly, for example by agreeing on deductibles or switching to a monthly payment method - without demanding the installment payment surcharges that were common in the past.

Markus Drews from Canada Life is also optimistic.

"The situation isn't easy, but it's not dramatic either," says Drews.

“There is no reason for me to bury my head in the sand.” The Canadian insurance company, which operates in the German market from Dublin, specializes in long-term employment protection policies and for lifelong income.

"We were concerned that the insured would terminate their contracts because of uncertainty," says Drews.

However, a survey has shown that business with long-term insurance is stable.

Rather, there is restraint in the controversial one-off investments, which have provided insurers with high income for a number of years: "Business is declining across the industry this year," explained Drews.

Restraint instead of pithy words

The Federal Association of German Insurance Merchants (BVK), which is otherwise known for its pithy words in the direction of the insurance industry, was comparatively cautious this year.

Instead of shooting at the insurance companies, BVK President Michael Heinz announced the establishment of a broker advisory board.

The association wants to set new impulses and offer the around 40,000 members of the mediator association help to help themselves.

"The broker market is changing tremendously," Heinz explained the decision.

"We want to get and maintain a kind of interpretive sovereignty over the market." People who do not belong to the BVK should also be deliberately consulted.

"We are still thinking about who can help us monitor this changing market and take initiatives," said Heinz.

Despite complex crises, the insurance industry in Dortmund is prepared - and affirms its ability to adapt to the new challenges.

Due to the uncertain economic situation, it is unclear how things will actually continue for insurers, brokers and customers in the coming months.

The development of the industry remains more unpredictable than ever.