Administrative expenses
The price for the services of the health insurer
The administrative expense ratio shows the percentage of premium income used for administrative costs. Lower administrative costs mean more funds for the insured. The administrative cost ratio explains whether a health insurer provides services more expensively or cheaper than its competitors.
Here, too, the view must remain differentiated: Many advisory services offered by insurers benefit health policyholders but increase the administrative cost ratio. The administrative cost ratio also tends to be higher for health insurers who insure many civil servants because only part of the risk is insured.
ADMINISTRATIVE COSTS IN PRIVATE HEALTH INSURANCE
| Private health insurance | Administrative expenses |
|---|---|
|
1 % |
|
1.5 % |
|
1.7 % |
|
1.8 % |
|
|
1.9 % |
|
1.9 % |
|
2 % |
|
2.1 % |
|
2.1 % |
|
2.2 % |
|
2.2 % |
|
2.2 % |
|
2.3 % |
|
2.3 % |
|
2.4 % |
|
2.4 % |
|
2.4 % |
|
2.5 % |
|
2.5 % |
|
2.6 % |
|
2.6 % |
|
2.7 % |
|
2.8 % |
|
3 % |
|
3.1 % |
|
3.3 % |
|
3.5 % |
|
3.6 % |
|
3.9 % |
|
4.3 % |
|
5.1 % |
|
5.9 % |