Innovation and Efficiency Through Third-Party Providers: The Key to Advancing the German Disability Insurance Market in 2026

A Market in Transition 

The German disability insurance market is in the midst of significant transformation, driven by rising demand, digital inefficiencies, and an increasing shortage of skilled professionals. 

Although more than 80 insurers currently operate in this space, the market remains largely analogue. This results in inefficiencies such as poor data utilization, outdated customer experiences, and a growing backlog of claims. 

Looking ahead to 2026 and beyond, insurers face a challenging yet opportunity-rich environment, one that demands innovation and strategic realignment. This is where third-party providers come in. By partnering with agile and technology-driven companies offering scalable solutions, insurers can close critical capability gaps more quickly and effectively than through internal development alone. 

A Growing but Underserved Market 

Germany’s disability insurance market currently comprises around 17 million active policies, covering a working population of 45 million people. Actuaries estimate that one in four employees will become disabled during their career. As a result, the market continues to expand, generating more than 80,000 new benefit claims each year. 

Because these benefits are often paid over several years, more than 500,000 ongoing claims currently require active management, with roughly 45,000 reviews conducted annually. However, persistent staff shortages and an aging workforce in claims management have led to significant processing delays, an issue increasingly scrutinized by BaFin. 

As Julia Wiens, BaFin’s Chief Insurance Supervisor, stated in April 2025: “A lack of personnel resources or an increase in claims volume cannot justify ongoing delays in processing benefit applications. We expect insurers to act promptly.” 

Currently, external claims administrators (Third-Party Administrators, TPAs) manage less than 2% of total claims volume. Meanwhile, 70% of insurance executives view digitalisation as the key growth driver for the industry, further underlining the case for outsourcing to technology-enabled claims solutions. 

Scaling Toward Market Leadership 

In recent years, Pro Germany has invested heavily in developing a scalable, technology-driven platform tailored to the specific challenges of the disability insurance sector, and continues to expand these capabilities. Beyond enhancing its proprietary claims assessment system, the company is focused on integrating AI support into assessment workflows and improving digital communication between insurers and policyholders. 

Backed by leading industry experts and extensive market experience, Pro Germany is well positioned to capitalise on emerging opportunities in 2026 and beyond. 

A key priority is to increase monthly claims processing capacity through automation and optimized resource allocation. The company also aims to harness data-driven insights to further improve the efficiency and accuracy of claims assessments. 

Employee training and professional development remain central to this strategy, ensuring a sustainable talent pipeline for the future. Expanding data analytics and process automation capabilities also continues to be a top strategic goal. 

Today, with over 30 claims handlers, Pro Germany operates one of the largest disability claims departments in Germany. In the coming year, the company plans to increase the number of processed claims by up to 75%. 

Building on its strong foundation in disability insurance, Pro Germany is also expanding its services into complex liability claims management, further reinforcing its market leadership and innovative edge in a rapidly evolving insurance landscape.