Non-admitted insurance: Permitted, in accordance with EU regulations except for compulsory insurances.

Premium taxes paid by insured: From 1 January 2007, most classes 19%. Except fire and fire business interruption (14%), combined buildings (17.75%), marine hull (3%).

Regulator: The German insurance sector is regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).

Overview: While the German financial system has not experienced systematic crises as some other European countries have, weakening balance sheets and tightening credit in the financial system will continue to be an issue.

Overall risk rating: very low