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The ELEMENT insolvency: why I will not stay silent

Why nobody took over the book after the ELEMENT insolvency, why a guarantee fund is paid for by policyholders in the end, and what happens when the next small insurer fails.

16 September 20266 min readNorman Nammert, NAMMERT Assekuradeur GmbH

Almost every day someone asks me when they will get their money from ELEMENT. I do not know. And I do not think that is acceptable. What follows is my personal view as an underwriting agent and broker, not a legal assessment and not a statement about the responsibility of any individual.

What happened: on 20 December 2024 ELEMENT Insurance AG, a Berlin based property insurer, notified the German regulator BaFin that it was over-indebted, shortly after its reinsurance had been terminated. An attempt to transfer the contracts, in full or in part, to another insurer failed. Insolvency proceedings opened on 1 March 2025. Around 320,000 contracts ended, most of them on 1 April 2025.

Where things stand: more than 25,000 claims have been filed, well above the 15,000 to 20,000 that had been expected. Nothing has been paid out so far, not even on claims nobody disputes. On 27 July 2026 BaFin said that no payments are expected for the rest of the year. How much claimants will eventually receive is still open.

The questions I hear every day: how many brokers and agencies went down with it? How many policyholders are still waiting for their money? How much is lost for good? And who takes responsibility? I have found no public figures, and I have not read an explanation that answers these questions.

The people left to answer them are the intermediaries whose names were on the application form. I am one of them. NAMMERT was never insolvent, and we did not wait: the contracts were moved to a new risk carrier. Yet to this day I am the one facing the questions about a collapse I did not cause.

First: why did nobody take over? The transfer was tried and failed. In my view a large insurer could have carried this book. Where business had gone badly, premiums could have been adjusted, and each customer could have decided whether to stay on the new terms. Instead the decision was taken away from everyone. Contracts ended, claims became creditor claims in an insolvency, and nobody can say when money will arrive.

Second: is a guarantee fund really the answer? In Germany there are guarantee schemes for life and private health insurers, but none for property insurers. The German government plans a resolution fund financed by all insurers and a separate guarantee fund for property business, implementing European rules with a deadline of 31 January 2027.

I am sceptical. The funds are to be financed by insurers, which in the end means by policyholders through their premiums. The German insurance association itself warns of extra costs. The same customers already pay for boards of directors and, indirectly, for supervision: BaFin states that it is financed entirely by levies and fees from the companies it supervises. A fund spreads a loss across everyone. It does not prevent it. I would rather see supervision that looks early, and a market in which a book is taken over before customers lose everything.

Third: what happens when the next small insurer fails? Among large insurers I regularly see mergers and takeovers that customers barely notice. ELEMENT wrote business across many property lines, and still nobody was found. So who takes over a small niche insurer with a single line of business after a major event has hit many of its contracts at once? Many owners do not even know which company carries the risk behind their policy. How to find out is explained on the page about risk carriers.

What this means for owners: whether you have a sailing yacht, a motor boat or a jet ski, the policy schedule names the insurer that carries the risk. If that insurer fails, the contract usually ends one month after insolvency proceedings open. An open claim becomes a creditor claim in the proceedings, and liability and hull cover have to be arranged again straight away. So after a loss it matters not only what is in the policy, but which company stands behind it.

I have no ready answer. But these questions belong on the table, not only on the phones of intermediaries. Dear BaFin, do you really think this is right?

Sources: BaFin notices of 3 March 2025 and 27 July 2026, BaFin information on its financing and on the guarantee schemes for life and health insurers, Versicherungswirtschaft heute of 28 July 2026, t-online on the planned guarantee fund (all in German).

Written by Norman Nammert Owner, NAMMERT underwriting agent and broker · Profile on LinkedIn

Worth checking

Check the policy schedule for the insurer that carries the risk, not just the broker or the brand Read that insurer’s Solvency and Financial Condition Report: own funds in euros, solvency ratio, reinsurance Find out whether the insurer writes a single line of business or many If an insurer fails, arrange new liability and hull cover at once, the old contract ends after one month File any open claim with the insolvency administrator, with all supporting documents, and keep copies

Common questions

Will ELEMENT claimants get their money?

That is still open. More than 25,000 claims have been filed and nothing has been paid so far. According to BaFin on 27 July 2026, no payments are expected this year.

Is there a guarantee fund if a boat insurer fails?

Not in Germany at present for property insurers. A fund is planned and is to be financed by insurers, which in the end means through premiums.

How do I find out which company carries my risk?

The policy schedule and the pre contract information name the insurer. If you only find a brand or a broker there, ask.

Who carries your risk? Boat insurance from Germany