A cooperative insurance company on mutuality (VVaG) is a legal form for insurance companies. In contrast to an insurance company led as corporation the VVaG does not have shareholders. Rather the insurants are usually members and thus carriers of the VVaG.

Introduction

The VVaG is a special legal form for insurance companies. Contrary to other legals form like the corporation, those in the law on limited companies is regulated and the limited company (GmbH), which in the GmbH law is regulated, gives it for the legal form of the VVaG no own law. The legal basic conditions for the VVaG is regulated in the law of supervision of insurance (VAG), "§"§ 15 - 53b.

Since a VVaG does not have shareholders, to whom dividends must be paid, can gained surplus in the enterprise remain or the club members (customers/their contracts) benefit. Ideally the VVaG can therefore to the individual tariffs higher surplus assign and thus to net yield and/or more favorable insurance premiums offer, than insurers in other legals form.

History

VVaG are the prototype of the today's insurance companies. The idea of the VVaG as legal form for a supraregional insurance decreases/goes back to the buyer seriousness William Arnoldi. When Arnoldi called the "“fire insurance bank of the German trading class"” in the year 1820 in Gotha in the life, he carried out thereby the idea of the mutual assistance: All carry together the load of the particular. The special: The insured ones are at the same time owners of the enterprise. Similarly as with genossenschaftlichen banks no owners giving excluding capital exist, why a continuous and independent of financial sources is guaranteed in the interest of the members. Necessary business decisions can be made and converted fast.

The VVaG is carried by the needs of its members. That secures market proximity and innovation strength for it. Similarly the decision-making body of the general meeting for the shareholders of a corporation the cooperative insurance company for its as the highest organ the member representative meeting called members, partly also general meeting.

Economic meaning

The VVaG represents a substantial order-political factor in the competition by its market operational readiness level. Related to the insurance market Germany 1999 about 127 billion euro premium was taken by the insurance companies. The premiums distribute themselves on the life insurance with 59 billion euro, on the health insurance with 20 billion euro and on the insurance against material damage with 48 billion euro. This premium volume distributes itself on the insurance companies after legal form in such a way that 58% are obtained by the corporations, 11% of the public insurance companies and 29% of the VVaG including their daughters. The market share of the VVaG distributes itself on approx. 300 VVaG, 220 "“smaller"” VVaG and 80 "“large"” associations.

In the section damage/accident the market share amounts to 28%, in the section life 23% and in the health insurance is the VVaG with 52% market share the corporations even clearly ahead. In the section damage/accident booked the VVaG a contribution increase of 0,6%, within the ranges lives 9.4% and in the section patient 3.0%, lying over the average. The average interest charges of the investment 1999 of over 179 billion euro amounted to 7.4%. The VVaG in Germany employed 1999 more than 72,000 employees.

The market meaning of the VVaG expresses itself also in their economic success. Economic success can be measured in characteristic numbers. VVaG have higher growth rates compared with corporations with the insurance contracts, are active in sections with lower risk, wise smaller cost-corrode out and gain more profit. The balances of the VVaG, based on the balance sheet total, have higher growth rates, prove more visible own capital funds, contain more quiet reserves and cover in the rest of more VVaG use their gross surplus before taxes with 28% for own capital funds, while corporations use for this only 10%. The economic success of the VVaG means one of the substantial strengths of its legal form and justifies its extraordinary meaning for the insurance market.

In the international competition the legal form of the VVaG proves however ever more than hindrance, why according to ambitionierte VVaG aims at transformations or Holdingstrukturen.

and capital exchange

1999 booked German VVaG over 37 billion euro 4.5% more than in the previous year, and holds thereby a market share of 29%.

VVaG have as can be prove higher growth rates, smaller costs and higher profit than corporations. Their balances show more visible own capital funds, contain more quiet reserves and form a better off. This applies according to a study of the insurance expert professor Farny (Cologne) from the year 1997 at least to the section damage/accident, whereas in the sections lives and patients are not to be determined significant characteristic numbers differences.

The most frequently stated arguments of the opponents of the VVaG - the missing possibility of taking up own capital funds over the capital market and alleged difficulties of the representation of - do not apply. VVaG exhibit lying in the section damage/accident on the average substantially over target, so that one multiplicity of VVaG and 450% exhibit a covering degree of the be between 250. In the life insurance the cut lies between 150 and 200% and in the section patient between 200 and 300%.

Fact is also that the VVaG to larger extent than corporations can supply developed profits to own capital funds, since they do not have to satisfy shareholder needs. In addition tariffs and achievements can be regarded in this way more stable as their members. Additionally quoted benefit rights offer themselves as alternative to the procurement of capital. A further possibility of using the capital market exists by the creation of subsidiary companies in the form of corporations and the bundling of activities in intermediate getting thing. This offers the possibility of a stock exchange course with sufficient volume even.

Working group of the cooperative insurance companies on mutuality

All German cooperative insurance companies on mutuality are organized in "„the working group of the cooperative insurance companies on mutuality registered association (BAD ONE) "“. The BAD ONE has its seat in Cologne. To be diminished as substantial goals the BAD ONE are the advantages VVaG thoughts more strongly into the public discussion to be brought and the disadvantages of the VVaGs in relation to other legals form.

Related links

• bad vvag.de official Website of the working group of the cooperative insurance companies on mutuality registered association (BAD ONE).
• versicherungsunternehmensrecht.de - information to the insurance company right.

Articles in category "Cooperative insurance company on mutuality"

We found here 13 articles.

Related Websites

We found here 6 related websites.

• Co-operative Insurance Society Limited - Review - Co-op Insurance ...
  Read reviews and compare prices for Co-operative Insurance Society Limited. ... Because of the society's mutuality they can give realistic prices for their ...


• ICMIF Networks: Mutuality, Cultural Diversity and Sustainable ...
  


• ICMIF: Members list
  Cooperative Insurance, Sri Lanka. Islamic Insurance Company, Sudan. Shiekan Insurance & Reinsurance Company, Sudan ... Valuing our Mutuality. Web site ...


• ICMIF: Valuing our mutuality
  These are the main principles of mutuality, not the legal form of the company. This means the study will include mutual and cooperative societies and stock ...


• Islamic Insurance (Takaful)
  It is well known that in most non-Islamic countries there are cooperative and mutual insurance companies. There is no harm from the Shari`ah point of view ...


• Report of the International Co-operative & Mutual Insurance ...
  INTERNATIONAL CO-OPERATIVE AND MUTUAL INSURANCE FEDERATION (ICMIF) ... co-operative movement and democratic mutuality nationally, regionally, and globally. ...