Bankruptcy insurance Element - What counts now for 320,000 customers

Shock for policyholders: What to do if the insurance company is insolvent?

The news came as a blow to many: Element Versicherung, once celebrated as an innovative start-up, is insolvent. The case affects more than 320,000 customers - many of whom did not even know that they were insured with Element because the insurance was often taken out via partners such as Vodafone, BMW Bank or BavariaDirekt.

Now it is clear: the contracts have been automatically terminated since April 1, 2025 - this is regulated by the Insurance Contract Act. So anyone who thinks they are still insured is mistaken. The good news is that claims for compensation can still be made until May 31, 2025. And over 11,000 people have already done so.

What happens to existing claims?

Since the official start of the insolvency proceedings on March 1, 2025, insolvency administrator Friedemann Schade has been working flat out to bring order to the chaos. All policyholders were informed by post and asked to submit their claims online - bundled via a portal in order to be able to manage the flood of cases.

One thing is clear: the earlier the claim is filed, the better. Because, as with any insolvency, there is no entitlement to full payment. Only those who file in good time have any chance of receiving part of their money.

The problem is that many of the affected policies were brokered via third-party companies. Not everyone knew that they had a contract with Element - a real information problem that many people only realized thanks to the insolvency information portal. There is now also a list of all the partner companies through which the contracts ran.

When partners stonewall: now it's getting legal

According to the insolvency administrator, he has been able to find amicable solutions with most of these partner companies - they are assuming their responsibilities and continuing to perform, at least proportionately.

However, one company has so far refused to meet its obligations to ELEMENT customers. As the insolvency administrator explains, the company is still obliged to perform - even after the insolvency. This is why a dispute is now being fought before the Düsseldorf Regional Court. A name has not (yet) been mentioned, but the case is likely to have a signal effect for similar disputes.

It's not a start-up flop, it's a system failure!

This insolvency is not a tragic isolated case - it shows how poorly consumers are protected in the insurance jungle. It is unacceptable that many people did not even know who they were insured with. Sales via third-party providers may make for quick deals - but for customers this ends in flying blind.

And one more thing: it is unacceptable for contracts to simply fall through and for people to be left empty-handed without taking action. Automatic referral to substitute insurers, as is standard in other countries, is urgently needed. Politicians are needed here. Better transparency obligations and protection mechanisms are needed, especially when new providers enter system-critical areas such as accident or household insurance.

Our advice to all Element customers: Act now, meet deadlines, file claims - and look for a new insurance company at the same time.