Corporate Health Insurance: A Strategic Growth Opportunity for Brokers
Despite the economic uncertainties of the pandemic, Corporate Health Insurance (betriebliche Krankenversicherung or bKV) in Germany is experiencing significant growth, with the number of insured employees now exceeding one million. This trend presents a major opportunity for insurance brokers and advisors. To understand the drivers and how to capitalize on them, we spoke with Daniel Schmalley, Head of the Competence Center for Corporate Clients at Barmenia.
Interview: The Rising Demand for Corporate Health Plans
Q: It's somewhat surprising that the number of employees with bKV has continued to rise during the pandemic. How do you explain this?
Daniel Schmalley: The pandemic has sharpened our collective focus on health. Employees are paying more attention to it than ever. At the same time, the economy is growing strongly; the skilled labor shortage is becoming acute again, and companies must compete to attract and retain talent. Additionally, surveys indicate nearly one in four employees wants to change jobs post-pandemic. All this leads to bKV being in high demand as a personnel tool to motivate employees, attract new hires, and even reduce absenteeism, which often rises during economic upswings.
Q: Despite these favorable conditions, bKV isn't considered an easy sell among brokers.
I would say it's not a fast business, but it's a very good business. bKV is a product that requires consultation and perseverance, but it's ultimately very worthwhile. Multiple stakeholders are often involved within companies, and reaching a joint decision can take time. In this role, brokers act like business consultants, advising comprehensively on workplace health, employee motivation, and the practical implementation of a bKV plan.
Q: Is bKV therefore only for specialized brokers?
Experts usually find it easier, but I also want to encourage brokers who have had little contact with the topic to venture into bKV. The market is growing and, in my view, is far from saturated. Those who want to seize the opportunity can and should build expertise now. Part of our mission at Barmenia's Competence Center is to accompany brokers and provide training as needed. We work with them hand-in-hand, as partners by their side.
Key Trends and Innovations in Corporate Health Insurance
Q: bKV has changed a lot in recent years. What are the key trends?
The offerings have modernized significantly. They have become more flexible, and I can at least say for Barmenia: bKV today is also extremely low in administrative burden. These and other innovations have, in my opinion, helped increase demand. For example, we invested early in telemedicine, and currently, our new budget tariffs, offered under the name WellYou, are very popular. Employees can spend 300, 600, or 900 euros per year (depending on the agreement) on additional health benefits of their choice—whether for comprehensive check-ups, medication, naturopathy, dental care, vision aids, or hospital daily benefits.
The Corona crisis has even given bKV a major advantage over other corporate health offerings…
Q: …which is?
It is location and time-independent. Unlike traditional health programs, it doesn't require physical presence in a specific place. Think of wellness days in the cafeteria, office massages, or a yoga class right after work. Corporate health must reach everyone and work everywhere—including the home office. Otherwise, programs miss those who, for instance, don't want to commute back to the office on a Tuesday at 5:30 PM just for a back-care class. All this also speaks for bKV.
Q: What role do assistance services play?
I think their importance will grow. The assistance services in our offering can also be used very flexibly almost anywhere—such as free 24/7 telemedical consultation, a specialist appointment service for earliest possible access, or exhaustion prevention (professional help for managing stress).
The Broker's Playbook: Demonstrating Value and Closing the Sale
Q: Companies often conduct a cost-benefit analysis. How can brokers convince them that bKV is worthwhile?
First, a bKV is not expensive. There are much larger corporate expenses. Second, the costs are quickly put into perspective when compared to the expense of a personnel search because you couldn't retain a good colleague: think headhunter fees, internal time for interviews, and the onboarding phase for a new employee. Third—depending on the company—other factors can play a role. For example, the goal of reducing sick leave. A bKV can contribute to this through improved preventive care.
Q: So the cost-benefit analysis is positive?
Yes, and it even helps us: It prevents bKV from being relegated to the 'smoothie corner'—that is, being perceived as just another nice extra, like fruit juices in the office fridge. By the way, I like smoothies. But bKV is a tangible, important, and effective personnel instrument. That's why competent support and advice from brokers are so crucial.
Actionable Insights for Brokers
- Position Yourself as a Consultant: Move beyond selling a product to advising on overall employee health strategy and retention.
- Highlight Flexibility & Modernity: Emphasize features like telemedicine, budget options (e.g., WellYou), and location-independent benefits that suit hybrid work models.
- Build a Business Case: Frame the cost against recruitment/retention expenses and potential reductions in absenteeism.
- Leverage Insurer Partnerships: Work with insurers like Barmenia that offer dedicated support and training for brokers entering the bKV space.
- Focus on the Post-Pandemic Landscape: Use the increased focus on health and the 'Great Resignation' trend as compelling reasons for companies to invest in bKV now.
The corporate health insurance market represents a sustainable and growing niche for brokers willing to develop the necessary expertise and adopt a consultative approach.