Germany's Federal Financial Supervisory Authority expects insurers to decide most benefit claims within one month

Germany's Federal Financial Supervisory Authority (BaFin) issued a supervisory notice to the insurance sector after receiving numerous consumer complaints about lengthy processing times for benefit claims. BaFin indicates that, in an average insurance case, it generally expects claims to be fully processed within one month, assuming the policyholder has fully complied with cooperation obligations. The notice refers to section 14(1) of the Insurance Contract Act (VVG), under which an insurer’s monetary payment becomes due once the necessary investigations to establish the insured event and the scope of the benefit have been completed, including a reasonable consideration period. Insurers are expected to organise their operations so that claims can be paid promptly after those investigations, and persistent delays cannot be justified by insufficient staffing or higher claims volumes. More complex cases, such as those involving personal injury, may warrant longer processing times where steps such as expert reports, medical examinations, site inspections, access to official investigation files, or awaiting the outcome of criminal proceedings are needed; where delays amount to supervisory deficiencies, BaFin can take remedial measures under section 298(1) of the Insurance Supervision Act (VAG).