Bochum insurer loses license: over 100,000 customers affected

Financial regulator revokes license

120,000 customers: German insurer is being liquidated

Bafin is revoking the license of one of the largest death benefit funds. Those insured now have to prepare for financial cuts.

Out for an insurer: The German financial regulator Bafin has withdrawn the license of the Bochum Mutual Insurance Association (BVaG). This emerges from a communication from Bafin.

The insurer that specializes in death benefit insurance is no longer allowed to conclude new insurance contracts due to the withdrawal of the license. Contracts that have already been concluded may neither be increased nor extended.

According to its own information, the insurer has around 120,000 members. Although their contracts will be continued, they may have to be prepared for service restrictions. This means that the contractually agreed payouts from the insurer may be lower.

Funeral insurance is life insurance that… Death pay out a set sum to the surviving relatives – earmarked for funeral costs. The sum insured is usually between 3,000 and 15,000 euros. In return, policyholders pay a fixed monthly premium, which can vary depending on the age at which they take out the insurance.

Funeral funds are particularly well anchored in the Ruhr area – their roots lie in the coal and steel industries. Employees founded these funds, especially in the first half of the 20th century, in order to be able to cover their own funeral costs due to the often dangerous work.

In addition to the Hoesch pension fund, the Bochum mutual insurance association is one of the largest death benefit funds in this country. In recent years he has taken over many smaller death funds, including the “Notgemeinschaft Zeche Hugo”, the “Begräbnishilfe Berghofen” and the “General Death Fund”. Duisburg Oberhausen”.