Deutsche Telekom founds its own reinsurer in Cologne!

Deutsche Telekom founds its own reinsurer in Cologne!

Deutsche Telekom is planning to set up its own insurance company that will act as a reinsurer. The start of the new company is scheduled for mid-2026 in Cologne. The insurance broker DeTeAssekuranz will also be based here, which promises strategic advantages. The measure is part of a trend in the industry, with many companies preferring to set up their own insurance companies, also known as captives, in order to be able to operate independently of the price increases of the traditional insurance industry. Industry giants such as BMW, BASF and Siemens have already successfully taken this step.

Deutsche Telekom is dissatisfied with the current price developments in the insurance industry. The group today pays between 100 and 150 million euros in insurance premiums for property and liability risks. By founding the reinsurer, Telekom wants to take on some of its own responsibility and could therefore record a double-digit million sum in premiums. The target capital for the new company is more than 50 million euros.

Rising costs and corporate reactions

The decision to found the reinsurer must be understood in the context of the high price increases for insurance in recent years. Company bosses see the increases as scandalous and a direct threat to their financial planning. This has led to a growing interest in own insurance solutions. Telekom has already invested in preventive measures, but does not see any reduction in premiums, which increases the cost burden for smaller subsidiaries.

Telekom confirmed the plans and emphasized that the market is demanding higher premiums and deductibles. While the high retentions are acceptable for the group, they pose a problem for smaller subsidiaries, which may have difficulties under these conditions. The creation of the new reinsurer is seen as a response to these challenges and could offer companies more flexibility in risk management.

What is striking is that Telekom consciously chose Germany as its location. This move is intended to avoid political difficulties, especially due to the fact that the state holds 27.8 percent of the shares. The launch is seen as a necessary step in a changing industrial insurance landscape where flexibility and cost-effectiveness are paramount.

The management of the new insurer has not yet been determined in terms of the company's future direction and strategy. The development will continue to be closely monitored, as enthusiasm for own insurers often decreases during periods of low prices and after large losses.

For more information, read the coverage South German newspaper and InsuranceMonitor.