Occupational pension provision: Between crisis and innovation

Additional salary benefits are also increasingly important in small and medium-sized enterprises (SMEs). They are no longer just a cool move, but candidates are actively seeking them out. Companies use these services to present themselves as responsible employers and to increase their attractiveness in competition for skilled workers.

It could be expected that insurers’ company pension contributions should also fully benefit from this development. However, the reality is different: the market share of company pension schemes (bAV) has been declining in SMEs for years, decreasing from 42 percent in 2019 to 36 percent in 2024, according to a brand new study by the market research institute Today and Tomorrow now shows. The signs are different for supplementary company health insurance (bKV): it increases; According to the study, there is an increase from eleven to 15 percent.

However, market researchers do not see great success in the market. Part of the reason for this is that bAV and bKV compete with a number of additional salary benefits, such as work bikes, fitness studios, kindergarten subsidies and other benefits. They are threatening to overtake company pension products, according to Today and Tomorrow.

Therefore, in its new ground-breaking study “The psychology of company pension provision – a 360 degree view”, the market research and consultancy institute examined the question of the central barriers and success drivers of the pension products under question on the market. Central conclusion: To be relevant or relevant again, occupational pension provision must be much more attractive than before. The company’s pension scheme in particular needs extensive realignment if it is not to lose further market share.

What makes fringe benefits attractive?

The main reason for the attractiveness of additional salary benefits is how they can be experienced in everyday life. From a psychological point of view – keyword “pyramid of needs” – there are already striking differences: Although company pension provision – especially company pension schemes – primarily address basic security needs associated with time to a future that is difficult to experience and at first only a possibility. risks, other additional salary benefits such as a work bike or a fitness studio focus much more on “higher” needs for social integration and, in particular, for individual recognition and self-fulfillment. These benefits can be experienced directly in everyday life: people enjoy the benefits, talk about them and actively recommend them to others, according to the authors of the study.

Between rational relevance and emotional uncertainty

However, this is rarely the case with company pension schemes. Company pension schemes (bAV) are often caught between rational importance and emotional uncertainty. Employees see the offers as vague promises about the future that tend to be dubious because they do not provide tangible, positive experiences in their daily lives. To increase the attractiveness of company pension schemes, more emphasis should be placed on increasing the direct benefits of the products. This could happen through additional benefits that can be experienced in everyday life.

Communication should also be designed not only rationally, but emotionally appealing to make the relevance clearer. According to Today and Tomorrow, company health insurance (bKV) has been developed there, especially with the “budget tariffs”. These combine protection in case of illness with directly visible benefits, such as the opportunity to do something actively for your own health or to treat yourself to health services. This approach combines security and positive emotional added value in the daily life of employees and thus offers a successful model for future developments in company pension schemes, according to Today and Tomorrow .

Additional salary benefits must also appeal to decision makers

The broad argument in sales that “additional salary benefits strengthen employee loyalty and encourage employee recruitment” falls short, as it focuses primarily on the needs of decision makers. for security (ensuring company). Instead, more consideration should be given to the individual values ​​and needs of decision makers, such as a sense of responsibility and recognition as a caring leader.

Otherwise, additional salary benefits are seen as a necessary evil, which is also met with little response from the workers. Axel Stempel, Managing Director at Today and Tomorrow, emphasizes that insurers should learn from successful supplementary salary benefits in product design, marketing and sales of company pension plans. Without new impetus and realignment, company pension schemes (bAV) are particularly at risk of another downturn, which could lead to a loss of market share.

bAV: Too complicated, unclear and outdated for many

What is surprising is the report from the study, especially in the company pension scheme, SMEs rarely buy products out of real conviction. “It is more likely that the decision-maker has been “convinced” or simply complied with the employee’s statutory entitlement (only when asked). There are hardly any suggestions within the company. And only target groups with a higher AV requirement are turning away,” he says. In addition, entrepreneurs fear the high level of effort required to implement and manage the company pension scheme. Respondents also emphasized that the products often appeared “outdated” in their outward appearance.

Insurance brokers are also pessimistic about the current state of the company pension market. At the same time, there is a desire among retail experts for alternative, better treatment of company pension schemes in the universe of supplementary wage benefits and also for more political lobbying by insurers. “Insurers are in control of making the company’s pension scheme more attractive and internally competitive and leading it to a better future,” the study’s authors wrote. One can understand it as a call to action for insurers.

bKV: So far less known, but with potential

A look at bKV shows that it is still not widely known among SMEs. An obstacle to sales is often the minimum number of employees required for collective agreements and the uncertainty of whether the benefits can be transferred if you change employer. Although a “budget target” seems attractive in principle, employees are still dissatisfied with its implementation.

Insurance brokers also want bKV to have a stronger role in the area of ​​additional salary benefits. In the long term, however, sales see a bright future for the bKV, as statutory health insurance (GKV) benefits are expected to be further reduced and private payments will increase further.

Do a background check

For the study, 40 in-depth interviews were conducted with selected representatives of key market stakeholders: employers of different sizes and company sectors, workers (white and blue collar) and insurance brokers with many years of experience in ‘ sell bAV and bKV . This comprehensive research overview provides insurance companies with valuable insights, starting points and incentives for future marketing strategies, sales management and product developments in occupational pension provision.