Dr. Martin Seibold: Professor Walthes, your approach reflects a strong commitment to innovation and value creation. Let us now turn to current global challenges. In light of the numerous geopolitical, economic, and ecological issues facing the world today, which do you consider most critical from the perspective of the Versicherungskammer Group, and how are you addressing them?

Professor Dr. Frank Walthes: We are currently experiencing an unprecedented convergence of transformative global developments. From a geopolitical standpoint, I consider the establishment of a new European security architecture to be of utmost importance. Europe must possess the strength and resilience to assert and defend its interests—either independently or in concert with other liberal democracies. Equally pressing are the consequences of climate change, which demand robust responses such as reliable flood protection and proactive measures to mitigate the impact of extreme weather events. In this regard, we fully endorse the proposals of the future German federal government to allocate substantial investments over the coming decade toward infrastructure, security, and climate resilience. Furthermore, the regulatory landscape has evolved significantly, with a marked increase in complexity over the past decade. Regulatory frameworks such as DORA and Solvency II exemplify this trend. In response, we are prioritizing the development of effective compliance management systems and fostering constructive collaboration with supervisory authorities. Our overarching objective is to streamline administrative processes while maintaining full regulatory compliance.

Dr. Martin Seibold: Looking ahead, what developments do you believe will most significantly shape the insurance industry over the next 25 years, and what are your expectations for the future of the Versicherungskammer Group?

Professor Dr. Frank Walthes: Artificial intelligence and automation will remain central to the industry's evolution. The ability to process and interpret large volumes of data will continue to be a decisive competitive advantage. In parallel, the current geopolitical realignments will lead to a reconfiguration and diversification of capital investment strategies. On a broader scale, Germany’s socio-economic trajectory will be determined by how effectively we manage demographic change and reform our social systems. As the elderly become the largest demographic group, their needs will increasingly influence both political and societal agendas. In this context, enhanced capital funding for healthcare, long-term care, and pensions will be essential—not only to ensure financial sustainability for younger generations but also to stabilize our social infrastructure. The insurance sector is uniquely positioned to offer reliable and forward-looking solutions in these areas.

Dr. Martin Seibold: Versicherungskammer has been a pioneer in the application of artificial intelligence within the insurance sector. Is this leadership position something you intend to maintain? What role do you foresee for emerging technologies such as AI, IoT, and quantum computing in the future of insurance?

Professor Dr. Frank Walthes: Technology will undoubtedly remain a cornerstone of innovation in our industry. We are already leveraging AI in areas such as claims and risk management to support data-driven decision-making. Moreover, we have implemented a secure, enterprise-grade GPT solution tailored to our internal needs. Currently, we are developing an intelligent knowledge assistant—a chatbot powered by an advanced language model that retrieves relevant information directly from our VKBrain knowledge management system in natural language, complete with source references. Digital transformation is permeating all aspects of our operations and is increasingly integral to our customer service offerings. Examples include digital health services for policyholders, AI-based leak detection for claims prevention, and real-time risk monitoring and big data analytics enabled by IoT technologies.

Dr. Martin Seibold: We are witnessing a growing trend of consolidation in the German insurance market, including portfolio transfers and mergers. What developments do you anticipate in the coming years, and what role will the Versicherungskammer Group play in this context?

Professor Dr. Frank Walthes: Indeed, we are observing a marked increase in consolidation activities within the German insurance sector, which we view as presenting new strategic opportunities. We are actively monitoring the market, remain open to potential engagements, and are prepared to act when appropriate. However, any decision to submit a binding offer will be made only after thorough analysis and careful consideration.

(1) At the beginning of the 2000s, following an internet boom with large investments in so-called dot-com companies, there was a massive slump in the capital markets.

(2) Ludwig Erhard was a West German economic politician in the 1950s and 1960s.