Review on reduced rates for healthy lifestyles: BGH examines insurance premiums.
What's a Telematics Rate?
Telematics rates are those where an insured person's behavior is monitored, typically through an app. The premium is then calculated based on this information. "These programs are mostly seen in car insurance, where driving styles are assessed," explains Stephen Rehmke, the spokesperson for the Federation of Insurers (BDV). "Insurers track their customers' actions, analyze the data, and reward those with lower risks by giving discounts on premiums." On the other hand, the controversial rate involves collecting health and fitness data about the insured, which is a very personal aspect of their life, Rehmke says.
Which tariff is being argued about at the Federal Court of Justice (BGH)?
In the given scenario, the BDV is arguing against a tariff from Dialog Life Insurance, a subsidiary of Generali. The tariff requires customers to become members of Generali's health program. They receive points if they engage in activities such as exercising or visiting the doctor. The points are collected through an app, and as a reward for a healthy lifestyle, vouchers and discounts are given at partner companies. The number of points determines the status, "Bronze," "Silver," "Gold," or "Platinum," which then influences the amount of the premium to be paid. Customers who achieve Platinum or Gold status pay less than the previous year, Generali informed DPA. Customers are notified about premium changes.
What concerns the consumer advocates?
The BDV has issues with several aspects of the tariff. They consider it to be non-transparent and unfair as it doesn't disclose the specific behavior that leads to the actual discounts. Furthermore, there's an uncertainty about whether such health-conscious actions would not result in the desired surplus partaking, even if the insurer doesn't earn enough profit. It's also unfair that rewards would not be given if the fitness data arrives late - "either the customer forgets or the technology at the insurer fails," says Rehmke.
What does the BDV want from the lawsuit?
The lawsuit aims to invalidate the tariff and prevent the insurer from using such tariffs in the future. The BDV also demands that the insured be informed about how their personal data is being used and how their premium is determined. "We want to ensure that insurance companies can no longer adjust the premium amount unilaterally," says Rehmke. "Policyholders should be able to rely on a fixed premium for the duration of the contract."
Why is the BDV suing?
The BDV wants to draw attention to the issue and protect solidarity in insurance, which is based on the idea that the strong support the weak. The BDV believes that if this approach is introduced in private health insurance, the fit and healthy would benefit while the sick and ailing would face a disadvantage. Consequently, they've questioned the Generali program. The lawsuit was successful in lower and higher courts in Munich.
What does Generali say?
General Insurance Company claims that the appellate court had no concerns regarding the insurance product itself or the principle of considering health-conscious behavior. "Only two clauses related to surplus participation were deemed invalid," Generali states. They argue that the 'surplus sharing' concept inherently implies that discounts are not guaranteed even with healthy behavior. "With the Fitness Tariff, the surplus generated by policyholders who have significantly contributed to its creation through healthy behavior can be used," says Generali. It's worth pointing out that surpluses are profits that exceed the calculated guarantee.
Read also:
- The Statutory Health Insurance Companies in Germany are closely monitoring the dispute between the BDV and Dialog Life Insurance regarding reduced rates for healthy lifestyles, as it could set a precedent for private health insurance companies.
- The Federal Court of Justice (BGH) is currently examining the contested tariff, which offers discounts for health-conscious behaviors, as it has raised concerns about consumer protection and fairness.
- The Taxpayers' Association and Employees are watching closely, as the outcome of this case could impact the affordability and accessibility of health insurance for all, including employees and taxpayers.
- The Advisor for the Federation of Insurers (BDV), Stephen Rehmke, believes that the Generali program could lead to a divide between the fit and healthy and the sick and ailing, which would be against the principles of solidarity and fairness in insurance.
- Life Insurance and Private Health Insurance companies are closely following the case, as it could impact their own pricing strategies and the use of personal data to determine premiums.
- The Consumer Protection organizations have expressed concerns about the lack of transparency in the Generali program, as customers are not fully aware of how their personal data is being used to determine their premiums and rewards.
