Germany’s insurance sector is bracing for a pivotal round of negotiations on July 4 as union leaders and industry employers prepare to reconvene in a bid to break the deadlock in their ongoing wage dispute. The fourth round of collective bargaining discussions, to be held entirely online for logistical reasons, marks a last-ditch effort to reach consensus before talks risk being delayed until the autumn.
The Employers' Association of Insurance Companies (AGV), representing the majority of private insurers across the country, confirmed it would meet again with the United Services Union (Verdi) and the German Bank Employees' Association (DBV) following three inconclusive negotiation rounds since late March. The unions, frustrated by what they view as inadequate proposals, are ramping up strike action, with a coordinated day of demonstrations set for June 26 in cities including Berlin, Munich, Frankfurt, Hamburg and Cologne.
At the heart of the dispute is a demand from Verdi for a 12% increase in salaries and allowances over a one-year period, along with a €250 monthly raise in training remuneration. The union is also pressing for a new collective agreement addressing digital transformation and structural changes within the sector.
The employers, however, have so far tabled a more modest offer: a 4.8% pay rise commencing in August 2025, followed by a further 3.3% in September 2026. The proposal came with a suggested 28-month term - terms which Verdi flatly rejected, prompting the escalation in industrial action.
The AGV plays a central role in the German insurance landscape, acting not only as the sector’s bargaining agent but also as an advisor on labour law, HR policy, and workforce strategy. Its membership spans the full breadth of the industry - from life and health insurers to property and reinsurance firms - collectively employing well over 200,000 people.
The negotiations concern approximately 180,000 administrative and support staff across the industry, a workforce increasingly vocal in its call for compensation that reflects inflationary pressures and the evolving demands of the modern insurance workplace.
Should the virtual talks on July 4 fail to produce progress, observers fear that further strike action may deepen, and formal discussions could be stalled for months - just as the sector grapples with broader challenges of digitalisation, regulatory change and talent retention.
