private health insurance premiums skyrocket: why Hanse Merkur had to step up their game
Insurance provider Hanse Merkur records escalating expenses and premiums - Hanse Merkur insurance firm discloses increased expenses and contributions
Hey there! 🤝 In the world of insurance, change is the only constant. Let's talk about one such change that has got everyone's attention - the behemoth increase in private health insurance premiums by Hanse Merkur, effective from New Year's Day.
Now, if you're wondering why the Hamburg-based company had to take this step, let's break it down for ya!
The cost crush 💰💰💰
You guessed it - it all comes down to costs! Hanse Merkur is grappling with a surge in the price of medications and treatments, as well as an increase in doctor visits. In an industry where every penny counts, these escalating costs leave insurance providers like Hanse Merkur with no choice but to pass on those additional expenses to their customers.
The numbers don't lie 📈
In the past year, Hanse Merkur has seen a staggering 9.7% growth in premium income, reaching an impressive 2.95 billion euros. This growth can partly be attributed to an expansion in the number of fully insured customers, which saw a notable rise of around 13,200 individuals to almost 314,000.
But that growth didn't translate into improved profit, with Hanse Merkur's consolidated annual surplus (profit) decreasing by 10.2% to 120.9 million euros. No specific reason was given for this inconsistency, but it's clear that rising costs and increased premiums are a major factor.
Still one of the big boys
In an attempt to sustain profitability amidst escalating costs in the private health insurance sector, Hanse Merkur raised premiums by a significant margin for its policyholders, as illustrated by the industry-wide challenge to balance costs and business growth. The finance department, tasked with the responsibility of managing these expenses, has been under increased pressure to curb the rising costs of medications, treatments, and doctor visits.
Meanwhile, Hanse Merkur's robust employment policy may have played a part in attracting more customers, as shown by the surge in the number of fully insured clients by around 13,200 individuals. It would be interesting to assess whether implementing a more business-focused employment strategy could potentially improve profits while maintaining a competitive edge in the market.
