Corporate governance of insurers in Germany. German National Report
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Corporate governance of insurers in Germany. German National Report World Congress of the International Insurance Law Association (AIDA) 2018 Jens Gal
© The Author(s) 2020
Abstract Corporate governance is the set of rules, be they legal or self-regulatory, practices and processes pursuant to which an insurance undertaking is administrated. Good corporate governance is not only key to establishing oneself and succeeding in a competitive environment but also to safeguarding the interests of all stakeholders in an insurance undertaking. It is insofar not surprising that mandatory requirements on the administration of insurance undertakings have become rather prolific in recent years, in an attempt by regulators to protect especially policyholders against perceived risks hailing from improperly governed insurance undertakings. In Germany this has been regarded by many undertakings as an overly paternalistic approach of the legislator, especially considering that the German insurance sector has experienced for decades if not centuries a remarkably low number of insolvencies and that German insurers were neither the trigger nor the (especially) endangered actors in the financial crisis commencing in 2007. Notwithstanding the true core of this criticism, that the insurance industry was taken to a certain degree hostage by the shortcomings within the banking sector, the reform of German Insurance Supervisory Law via implementation of the Solvency II-System has brought many advances in the sense of better governance of insurance undertakings and has also brought to The present is for the most part an unaltered, only partially updated and amended version of a report answering the questionnaire “Corporate Governance of Insurers” developed by Jan-Juy Lin in preparation of the World Congress of the International Insurance Law Association (AIDA) 2018. The structure of the present, hence, follows this questionnaire, which also explains why only certain aspects of corporate governance of insurers are addressed. For better legibility, are included in every section some introductory remarks that do not directly answer a question but rather set the scene. At the moment of preparation of the report, Priv.-Doz. Dr. Jens Gal, Maître en droit was as a Juniorprofessor entrusted with a chair for European Insurance (Supervisory) Law at Goethe University, Frankfurt, and he currently holds a so-called Entlastungsprofessur at Goethe University. J. Gal () Johann Wolfgang Goethe-Universität, Frankfurt am Main, Theodor-W.-Adorno-Platz 3, 60629 Frankfurt am Main, Germany E-Mail: [email protected]
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J. Gal
light many deficiencies that the administration of some insurance undertakings may have suffered from in the past, which are now more properly addressed.
1 General Under German (Insurance) Corporate Law and especially German Insurance Supervisory Law the term governance is given a larger meaning than just the ultimate responsibility of the executive board for the steering of the undertaking and the responsibility to supervise and c
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