The freedom-of-services rules established by the third European Union (EU) Directive in 1994 allow an insurance company established in any EU country to sell into the entire EU, which, following the latest enlargement, comprises 27 individual countries. A number of European insurance companies are successfully using a cross-border approach to expand their business in this single market that has a combined population of nearly 500 million. While some European markets are approaching saturation, among the larger life insurance markets Germany stands out because of the relative lack of penetration by existing insurers.

This article provides the reader with key information and background on the German life insurance market and discusses opportunities for cross-border business into Germany.