Deutsche Telekom wins BaFin approval for new reinsurance captive in Germany
Deutsche Telekom has secured approval from BaFin to launch a new reinsurance captive in Germany. The move comes after months of planning and regulatory review. The captive will focus on managing high retention limits imposed by traditional industrial insurers on the company.
The license was granted ahead of schedule, with operations set to begin on May 1, 2026. KPMG AG Wirtschaftsprüfungsgesellschaft and KPMG Law Rechtsanwaltsgesellschaft guided Deutsche Telekom through the entire process. Their expertise covered actuarial science, corporate finance, risk management, and tax advisory services. The firm will also oversee compliance for the captive, while the telecom giant plans to handle other functions internally.
Germany was chosen as the base due to its efficient licensing timeline, comparable to traditional captive locations. The country’s harmonised regulations under Solvency II also played a key role. BaFin’s approval marks one of the few new insurance captives established in Germany in recent decades, reinforcing the nation’s growing reputation as a competitive hub for such structures.
The captive will initially operate within Deutsche Telekom’s property insurance programme starting May 1, 2026. By January 1, 2027, it will expand to include the company’s liability insurance programme as well. The captive’s launch will help Deutsche Telekom manage its insurance risks more effectively. With operations beginning in early May, the company now has greater control over high retention limits. The approval also highlights Germany’s increasing appeal as a destination for captive insurance ventures.
Read also:
- Federal Funding Supports Increase in Family Medicine Residency Program, Focusing on Rural Health Developments
- Potential Role of DHA in Shielding the Brain from Saturated Fats?
- Alternative Gentle Retinoid: Exploring Bakuchiol Salicylate for Sensitive Skin
- Hanoi initiates a trial program for rabies control, along with efforts to facilitate the transition from the dog and cat meat trade industry.
