Corporate Group Insurance (Firmen-Kollektiv-Versicherung)
Corporate group insurance is a contract under which an employer insures the employees of a business collectively against certain risks (e.g. accident, illness, death), without concluding an individual contract for each person.
Concept
Corporate group insurance is an insurance contract concluded by an employer, as the policyholder, for the benefit of its workforce as the insured persons, in order to collectively cover them against certain risks — such as non-occupational accident, sick pay, or death and disability risks within supplementary occupational pension provision. The group of insured persons is defined not individually, but according to objective criteria (e.g. employment relationship, job grade).
Advantages Over Individual Insurance
Group contracts typically offer more favourable premiums than individual insurance, since the group forms a larger and more homogeneous risk community that allows for better risk pooling, along with simplified enrolment without individual health screening, as the collective risk rather than the individual risk is the primary consideration.
Relevance for Insurance Practice
Corporate group insurance is a key instrument of employee benefits and plays an important role in structuring supplementary occupational pension benefits and sick pay solutions, as well as in employee retention.