|
Author: Katharina Grimme
27 November 2006
BKK Bundesverband, DAK, IKK-Bundesverband and other public health insurance companies announced last week that they intend to merge their IT services into a new holding company, operational from mid-2007, thus creating the largest provider of IT solutions and services for the public health insurance sector. It is expected that the IT holding will serve around 220 health insurers (representing 26 million clients) with around 1,000 staff and generate revenues of more than €200 million p.a.
Comment: This move is a further indication that the German insurance industry is increasingly looking for ways to improve efficiency and manage the costs of their IT systems. Earlier this year, eight public health insurers (seven AOK state organisations and Barmer) merged their IT into 'gkv Informatik', which provides IT infrastructure services and standardised software solutions from a single datacenter in Wuppertal.
The German insurance sector is lagging some way behind other industries (such as banking or manufacturing) in addressing IT efficiency and modernisation, and in the use of external service providers. Cost pressure is now increasing as a result of new regulation, changing business requirements and increasingly expensive and inadequate legacy systems. The (in-house) consolidation of IT capabilities is a first step towards increased efficiency. Over the next few years, we expect further opportunities to emerge for IT service providers to participate in the modernisation and operation of IT systems for the insurance sector.
|
