The role of the broker – the example of ELEMENT Versicherung
The insolvency of ELEMENT Insurance AG has significant consequences for policyholders and intermediaries. Policyholders must expect that claims they have submitted will currently not be settled and may only be reimbursed in part. There is also a risk that their insurance contracts will end automatically once the final insolvency proceedings are opened, which can lead to a loss of insurance cover. It is therefore recommended to review existing insurance cover immediately and, if necessary, to take out alternative insurance in order to avoid gaps in cover.click here to read an article by the Bund der Versicherten (German association of insured persons). Intermediaries are obliged to proactively inform their customers about the insolvency and its possible consequences. They should identify the affected policies in their portfolio and promptly offer their customers alternative insurance solutions. Careful documentation of the advisory meetings is essential to minimise liability risks.
click here to learn more about this on procontra-online.de. It is also pointed out that reversing premiums already paid is not a recommended strategy, as this can lead to further legal and financial complications. Overall, both policyholders and intermediaries need to act quickly and prudently to limit the negative consequences of the insolvency.
click here for another article on the topic from procontra-online.de.