Broker or direct? International health insurance

Checkpoints

Whom does the intermediary work for?
What selection is the advice based on?
Are your needs asked about and documented?
How is the advice paid for?

Three routes

Who represents whom

Route	Works for	Selection
Direct with the insurer	You sign without an intermediary.	That one insurer’s plans. You compare other providers yourself.
Tied agent	Is entrusted by an insurer (or another agent) with arranging contracts [source].	Must tell you which insurers they work for and whether exclusively [source].
Insurance broker	Arranges insurance on your behalf as the client, without being entrusted by an insurer [source].	Must base the advice on a sufficient number of contracts and insurers on the market, unless they expressly tell you beforehand that the selection is limited [source].

Whether someone is a broker is shown in the German intermediary register, together with the licence the activity is based on [source].

What the law requires

Advice, reasons, documentation

Under German law, brokers and agents must ask about your wishes and needs where the product or your situation gives reason to, advise you and state the reasons for their advice. They have to document this [source]. If they culpably breach these duties, they are liable for the resulting damage [source].

You can waive advice and documentation, but only in a separate declaration that expressly warns you that a waiver may weaken a later damages claim [source]. Read such a form carefully before signing.

This matters especially for international health insurance. Area of cover (with or without the USA), waiting periods, exclusions, cover during visits to Germany and what applies if you move back differ from plan to plan.

Buying direct

When buying direct can fit

Buying direct can fit if you know what cover you need, want to put several providers’ terms side by side yourself and your situation is simple: one destination, no pre-existing conditions, no questions about your German contract or a later return.

You then carry the choice yourself. Nobody is obliged to review the market for you, and nobody is liable if another plan would have fitted better.

Who pays

How a broker is paid

Brokers are usually paid a commission that is included in the premium and paid out by the insurer. A fee agreed with you, or a combination, is also possible. How we are paid is set out in our initial information (in German) and under How we work.

Commission can create a conflict of interest. So ask why a particular plan is recommended and which alternatives were checked. The reasons have to be given to you anyway [source].

Before the call

Five questions for any adviser

Status: Are you a broker or an agent, and what is your register number?
Selection: Which insurers and plans is your recommendation based on?
Reasons: Why does this plan fit my destination, my family and my way back to Germany?
Pay: How are you paid for this?
Later: Who helps me when my situation changes or a claim is disputed?

More: International health insurance for expats · What drives the cost

Frequently asked questions

What is the difference between a broker and a tied agent?

A tied agent is entrusted by an insurer with arranging its contracts. A broker arranges insurance on your behalf without being entrusted by an insurer and must, as a rule, base the advice on a sufficient number of offers on the market.

Both must ask, advise, give reasons and document this. Whether someone is a broker or an agent is shown in the intermediary register.

Sources: [1], [2], [3], [6]

Is buying through a broker more expensive than buying direct?

There is no general answer. Brokers are usually paid a commission included in the insurer’s premium. Whether a plan is offered more cheaply direct depends on the insurer.

Compare more than the premium: area of cover, deductible, waiting periods and exclusions. A cheap plan that covers your destination or visits to Germany poorly is not cheap.

Sources: initial information

Do I have to take advice?

No. You can waive advice and documentation, but only in a separate declaration that expressly states that the waiver may weaken your chances of claiming damages.

For contracts concluded at a distance, for example online, text form is enough.

Sources: [3]

Is a broker liable if the recommendation does not fit?

An intermediary must compensate damage caused by a culpable breach of the duties to advise or to base advice on a sufficient selection. This does not apply if the intermediary is not responsible for the breach.

That is why the record of the conversation matters to you too. Keep it.

Sources: [4], [5]