The market for tiny houses and permanent campers is booming and with it the demand for optimal insurance. Oberösterreichische has focused heavily on this area in Germany since the beginning of 2022 and offers a broad and tailor-made range of products. In an interview, Paul Ristock, branch manager for Germany at Oberösterreichische Versicherung AG, talks about the special expertise in this area, potential for brokers and what must be taken into account when providing advice.
Mr Ristock, how is the demand for tiny houses and long-term campers currently developing – in the market in general and in yours in particular? What are the main drivers?
Paul
Ristock: We are experiencing a real boom in the topic of leisure and living in the countryside as well as in the minimalist lifestyle. Pitches on attractive long-term campsites are so popular that there are already waiting lists – often with waiting times of several years. The Corona pandemic has further strengthened the trend towards holidays and weekend homes in one’s own country. In some places, long-term campers even use their elaborately designed porches and awnings as their permanent residence.
Gentrification is contributing to this trend, as is the lack of affordable housing, which is driving demand for tiny houses as a housing alternative. Tiny houses are becoming increasingly popular not only as primary residences, but also as vacation and holiday homes in rural areas. For us, these are exciting growth areas, as we have already developed tailor-made product concepts as a pioneer in this target group.
Which target groups do you primarily address with which products?
Ristock: The German branch of the Upper Austrian company has successfully established itself as a niche provider that appeals to private households with tailor-made product concepts. The offer is essentially aimed at target groups who want to use mobile homes, small and mini houses, construction trailers, permanent campers and similar objects that are not firmly attached to the ground. These versatile objects are used for a wide variety of purposes: as living space, weekend and holiday resorts, storage space, offices or as hobby houses on one’s own property.
The demand for such flexible living and working solutions is constantly increasing, especially in the context of the trend towards minimalist and nature-oriented living. An interesting example is the growing popularity of tiny houses, which are ideal for environmentally conscious and cost-efficient lifestyles due to their small space requirements and mobility. Many of our customers appreciate the opportunity to design their living and working spaces individually and flexibly without sacrificing comfort and design and to take advantage of the flexibility of location independence, as these properties represent a mobile property.
What is your USP when it comes to insuring tiny houses and long-term campers and what makes you unique compared to your competitors? What mistakes are often made in this segment when choosing the right provider? What should you pay particular attention to?
Ristock: Our greatest USP is our consistency and reliability, which Oberösterreichische has been demonstrating since 1811. While many competitors have withdrawn from the segment because the loss ratios have gotten out of hand and the claims settlement and the associated personnel capacities have become uneconomical, we remain steadfast. Insurance brokers and their customers have often had to accept high premium adjustments or even look for new insurance cover. Every insurance broker knows the effort and challenge of having to re-insure contracts with losses or even finding new insurance cover for older properties.
