Dental Supplemental Insurance Stays on a Growth Track: 2020 Market Analysis

Germans are taking out more and more supplemental health insurance policies. Their number also increased in 2020. In total, citizens have taken out 27.34 million supplemental policies with private insurers. Compared to the previous year, this represents an increase of 2.1 percent or approximately 560,000 contracts. In 2009, the figure was 21.48 million, meaning there are about 5.86 million fewer policies now. These figures come from data provided by the PKV Association.

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Dental supplemental policies (Zahnzusatzversicherung) play a significant role in these strong sales figures. The circle of insured persons could also be expanded in 2020. Approximately 539,200 new customers were acquired. This is a plus of 3.3 percent. Accordingly, there are currently just over 16.9 million contracts in force.

At the end of 2019, around 16.39 million citizens had such a supplemental policy. This means that in the last decade alone, the total number of contracts has grown by about 4.7 million or 38.9 percent. The data includes both individual and group tariffs. Generally, the number of contracts concluded does not have to be identical to the number of insured persons, as one policyholder may have taken out several contracts.

Recent Improvements in Statutory Dental Coverage

Since October 1, 2020, individuals with statutory health insurance (GKV) receive a higher subsidy from their health fund if one or more teeth need to be replaced. While the subsidy for so-called standard care was previously 50 percent, it has been increased to 60 percent. The subsidy rises if the patient can present a well-maintained bonus booklet: from 60 to 70 percent for a bonus booklet maintained for over five years, and from 65 to 75 percent for a bonus booklet maintained for over ten years, proving annual preventive check-ups.

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The Gap in Coverage and Rising Out-of-Pocket Costs

Standard care refers to the basic coverage agreed upon by statutory health funds, covering all necessary services—from a single tooth gap to a full denture. However, the subsidy is actually calculated based on cost-effective solutions. The costs for dental prosthetics are considerable. Depending on the federal state, individuals with statutory insurance had to pay up to 1,141 euros out of pocket for dental prosthetics in 2019. For higher-quality care, the out-of-pocket share increases even further.

Why Supplemental Dental Insurance is Crucial

This significant gap between statutory subsidies and actual treatment costs is the primary driver behind the growing demand for private dental supplemental insurance. These policies are designed to cover the substantial out-of-pocket expenses that remain after statutory benefits, allowing for better materials (like ceramic instead of amalgam fillings), more comfortable procedures, and comprehensive treatments without financial hardship.

For an international perspective, while Germany's statutory system provides a base, the need for supplemental dental coverage is a global theme. In the United States, dental insurance is often offered separately from major medical health insurance, either through employer-sponsored plans, individual private dental insurance policies, or as part of some Medicare Advantage plans. Understanding the value of dedicated dental coverage is key to maintaining oral health without unexpected financial strain.

When considering a Zahnzusatzversicherung, it's important to compare waiting periods, coverage limits, reimbursement percentages (e.g., 80-100% of costs), and whether the policy covers preventative care, basic treatments (fillings), and major procedures (crowns, implants, orthodontics). Early enrollment is often advised, as pre-existing conditions may be excluded.

The sustained growth in this market segment clearly indicates that more consumers recognize dental health as integral to overall well-being and are taking proactive steps to secure affordable, high-quality care through supplemental health insurance solutions.

Insurers and brokers struggle in claims management with high backlogs, increasing claim frequencies, skilled labor shortages, and growing customer expectations. Manual processes are expensive and slow.