Ombudsman (Versicherungsombudsmann)

Concept

The insurance ombudsman is an independent, out-of-court dispute resolution body that consumers can turn to in disputes with their insurer, without incurring court or legal fees. It reviews complaints regarding the interpretation of insurance contracts, the insurer’s denial of a claim, or other conflicts arising from the insurance relationship, and issues a decision or recommendation.

Procedure and Binding Effect

The ombudsman procedure is voluntary and free of charge for the consumer, while the resulting decision is generally binding on the insurer up to a certain claim value; if the amount in dispute exceeds this threshold, or if the consumer disagrees with the decision, recourse to the ordinary courts remains available.

Relevance for Consumer Protection

The insurance ombudsman contributes significantly to dispute resolution in the mass-market segment of personal insurance, as it provides consumers with low-threshold access to an expert and independent review of their complaint, without having to bear the often disproportionate costs and duration of court proceedings for comparatively small claim amounts.