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Growth Spurt: Christoph Buchbender

Christoph Buchbender, CEO of Rhion Versicherung AG

It would appear that The CEO Magazine caught Christoph Buchbender, the CEO of Rhion Versicherung, at a time of celebration. “The results are in,” he beams down the line from company headquarters in Neuss, Germany. “We’ve been voted Germany’s best property and home and contents insurer in the 2016 AssCompact Award – Brokerage Service.” The recipients of these prestigious awards, handed down by industry publication AssCompact, were announced during a formal ceremony at the annual DKM trade fair in Dortmund, which attracts up to 30,000 members of the finance and insurance industry. “It is the first time we have made it to the top spot, so we are delighted,” he exclaims, “especially when you consider that it is our clients, the insurance brokers and agents, who voted in these awards.” The significance of the setting, in front of the industry’s biggest names, did not pass by Christoph either. “DKM is a big and important event for us,” he enthuses.

For a business born as recently as 2005 to receive such a peer-elected vote of confidence demonstrates the speed at which Rhion Versicherung has grown. “For the past decade, we have steadily achieved year-on-year growth to a point that today our premium income is currently €100 million and our pre-tax profit is €5 million.”

RheinLand Versicherungsgruppe

Rhion Versicherung may be a relatively new name on the German insurance scene, but its parent company has belonged to the same 2 families since 1880. Named after the majestic Rhine River that separates the town of Neuss from Düsseldorf, RheinLand Versicherungsgruppe is one of only two remaining privately owned insurance businesses in Germany today (the other, Christoph says, is ARAG).

Christoph Buchbender, CEO of Rhion Versicherung AG
Christoph Buchbender, CEO of Rhion Versicherung AG

“We may still be a relatively young brand, but we have the heritage of our parent company to draw upon.” – Christoph Buchbender

Christoph joined the company in 1971 as an intern and never looked back. “I have been a board member since 1991. I doubt you will find anyone who has been in charge in the insurance industry for as long as I have,” he laughs.
Christoph admits that the RheinLand group struggled to find its footing for the best part of the twentieth century. “The years immediately following World War II were difficult, and then, during the 60s, 70s and 80s, we simply were not competitive enough.” By 1990, fortune started to finally swing in its favour. “We improved our competitiveness; however, we were trying to work with everyone, from industrial customers to commercial and private customers.” With a realisation that it was spreading itself too thinly, the company then changed focus, dedicating itself solely to private and commercial clients across 3 well-defined distribution channels: sales, brokers and bank insurance. Each is now represented by a strong, independent brand in its own right.

A general insurer, RheinLand Versicherung has its own sales force and employs more than 300 agents, customer advisers, and sales managers across the country. Credit Life International offers partners in the financial sector term life and payment protection insurance, while Rhion Versicherung markets its insurance solutions solely via an established broker network. “We may still be a relatively young brand, but we have the heritage of our parent company to draw upon,” he says.

Tailor-made insurance solutions

“In terms of Rhion Versicherung’s own products, our expertise lies in creating tailor-made solutions in liability, accident and property insurance for both individual and business clients. We are very focused on what we do. For example, we’ve chosen not to offer life insurance products at all,” Christoph explains. As of late 2015, liability and accident insurance both accounted for 25% of its business, while residential and other property insurance followed close behind, at 21 and 20% respectively. Christoph and his team have recently finished outlining the next stages in their 5-year plan. “Our goal is to double our premium income to €200 million in the next 5 years,” he says.

An ambitious target, yes, yet it is one that Christoph believes the company is very well placed to realise. “We know what we want to achieve, and we feel we have the right circumstances to achieve it. Our team is full of positive, motivated people, and we believe in the product. Over the past 10 years, a lot of hard work and effort has gone into developing the company to make it a little bit more successful than the year before. On the personal insurance front, we are currently rated in the top 3 providers in Germany, and from a commercial insurance perspective we are rated in the top 6. We want this momentum to continue.”

Headquarter RheinLand Insurance Group
Headquarter RheinLand Insurance Group

Competitive edge

He believes that Rhion Versicherung’s dedication to insurance brokers sets it apart in a crowded industry. “We really listen to what they want,” he says. “A broker needs to have good service, and they need to have an array of products, so that is what we are focused on providing.” Currently the company counts over 3,000 brokers (or “partners”, as Christoph refers to them) in its network. “And we are growing,” he continues. “That is a big difference between us and our competitors. Most other insurance companies are not growing their partner network.”

Speed offers the business another competitive edge, according to Christoph. “Of course, the multinational insurance companies have their advantages, but I really believe that our size gives us a lead. It allows us to react faster,” he says. “If I want a decision, I don’t have to call someone in Paris, Trieste, London or Stockholm. We can make our own decisions. We are fast.”

A willingness to challenge well-established norms in the industry hasn’t hampered Rhion Versicherung’s growth trajectory either. “The commission system for brokers in Germany is always the same, no matter the company,” he says. “Usually the only variation is whether the insurer pays 19, 20 or 21% in commission. What we have decided to do is make the commission directly relative to the claims rate. The idea is that we attract the better business with a lower claims rate, paying a higher commission on it.” It’s a concept which has split the industry. “Not everyone is a fan — that’s for sure — but half of the market is and that’s enough for us,” he laughs. While he acknowledges that “we cannot make everyone happy,” industry accolades such as the AssCompact award offer firm proof that the company is clearly doing more than one thing right.

Growth trajectory

In 2015, RheinLand Versicherungsgruppe recorded a profit across all 3 business channels, the first time the group had done so since the 3-tiered distribution channel was implemented, according to Christoph. While the group itself isn’t involved in insurance operations, it is responsible for managing a multimillion-euro real estate and investment portfolio, which he values at around the €150 million mark. “The overall aim of the group is to become less reliant on profit generated from RheinLand Versicherungsgruppe’s asset portfolio. We want to achieve the same profit without the assets even being factored into the calculations. Revenue generated through Rhion Versicherung’s premium income will be a big factor in this,” he says.

It is clear from speaking to Christoph that “if you’re an employee right now in this company, you have a chance to make a little money.”

With the advantage of youth on its side, it’s obviously a good time to be part of the Rhion Versicherung growth trajectory.

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