Simple because it matters.
Corporate Governance at ERGO
Corporate Governance stands for the responsible management and monitoring of a company with a view to creating long-term added value. ERGO views good corporate governance as a key challenge and an essential prerequisite in order to create long-term value for all relevant stakeholders.
Laws and Regulations
The Compliance System
"Compliance" means abiding by any applicable laws or corporate rules and principles. ERGO’s Compliance Management System is controlled by the compliance unit (ERGO Compliance). The Chief Compliance Officer reports directly to the responsible member of the Board of Management of ERGO Group AG.
The Compliance Management System at ERGO pursues a number of aims:
- To ensure the observance of statutory and internal regulations as well as those imposed by regulatory authorities which are relevant to our business,
- to avoid risks pertaining to liability, criminal punishment and to our Company’s reputation, its governing bodies (e.g. Management Boards, Supervisory Boards) and employees, and
- to protect customers’ interests.
The duties of the ERGO Compliance unit include
ERGO Compliance performs these tasks for ERGO Group AG, its German insurance and insurance holding companies and other companies in Germany. In addition, ERGO Compliance liaises closely with the other domestic companies and the compliance units of the subsidiaries abroad as well as the compliance team of our parent company Munich Re on compliance issues relevant to the Group as a whole.
The core of the Compliance Management System is a systematic and comprehensive risk analysis. The results create the basis for the activities of ERGO Compliance.
ERGO Compliance assesses the relevant risks in the individual business segments according to a uniform method and involves the respective experts and persons in charge in the company.
The risk analysis comprises the following steps and is carried out at least once a year and also ad hoc if required. The Board of Management of ERGO Group AG and the managers of the respective companies are regularly informed of the results and any significant changes.
Adhering to laws and regulations in the respective countries is, of course, a natural obligation for all employees, as well as abiding by corporate standards. This is the only way to avoid economic risks as well as liability and reputational risks for ERGO in the long term.
One of the most important rules is the Munich Re (Group) Code of Conduct (PDF) for staff, which states requirements for ethical behaviour of employees, senior executives and management, and is updated regularly.
ERGO also has its own code of conduct for independent sales partners in Germany. This sets out the major principles of collaboration and the common understanding of how to deal with customers and sales agents.
Internal corporate rules and regulations for various topics, such as a guideline for the tendering, planning, procuring and organizing incentives for office staff and sales forces, are also added. These ERGO Guidelines are reviewed regularly and updated where necessary.
- The Code of Conduct of the German Insurance Association for the Sale of Insurance Products (GDV Code of Conduct) focuses on the interests of customers and the quality of customer advice. ERGO also aims to provide customers with the best possible and individual advice. ERGO therefore regards the GDV Code of Conduct as the basis for collaboration with business partners and sales agents and has joined the Code against this background. ERGO has the implemented system for compliance with the GDV Code of Conduct for the sale of insurance products regularly reviewed by an external auditor.
- With regard to purchasing, we expect our suppliers to comply with our comprehensive Supplier Code of Conduct with defined principles for the protection of human rights and environmental protection. You can find more information on all requirements for suppliers on our website: ERGO Business Partner
Mandatory training for all staff, e.g. on Munich Re's Code of Conduct, regularly raises awareness of compliance issues.
Target-group-oriented trainings, such as on insurance antitrust law, supplements the general training. Formats and contents are regularly reviewed and adapted and updated as necessary.
Compliance advises and supports on an ongoing basis with regard to the implementation of compliance standards as well as in ad hoc cases.
ERGO does not tolerate any violations of statutory regulations or requirements of the Code of Conduct and internal guidelines. Instead, they are appropriately investigated and penalised. Each incident is individually assessed and sanctioned depending on the extent of the violation. At the same time, it is checked whether guidelines or processes in the company need to be changed.
There are a variety of ways in which violations are identified. In addition to regular queries, employees who wish to report a violation of applicable laws or other regulations can confidentially contact the relevant compliance departments. This applies to employees of all companies in Germany and abroad. Information can also be submitted via the ERGO whistleblower system, which protects the anonymity of the whistleblower to the highest standards if they do not wish to disclose
Employees who do not wish to contact Compliance directly can report to an independent external ombudsman. He is also subject to a strict duty of confidentiality.
Code of conduct
Regulations and guidelines
As a financial services provider, we rely to a great extent on trust. In order to prevent any - however unintentional - reputational damage, clear rules of conduct for all members of the Board of Management, employees and self-employed sales staff are required. However, it is our common understanding that we do not just wish to comply with legal and regulatory requirements. We feel committed to high ethical standards and principles.
Code of Conduct
For reasons of transparency, we have summarised and specified our ideas of corporate integrity in a binding code of conduct:
Further regulations and reports
ERGO and the companies belonging to the Group acknowledge their responsibility for environmental protection and sustainability. The sustained protection of environment and society is an investment into the future. We consider environmental protection as an essential part of our corporate governance. Our aim is to protect and preserve the environment and the natural basis of life for today’s and future generations.
As part of the Munich Re Group, ERGO is included in the non-financial statement in the Munich Re Group Annual Report and hence exempted from issuing its own non-financial statement. Additional information on the joint implementation of sustainability targets in the year under review can be found in Munich Re’s Annual Report.
Technology trends such as artificial intelligence (AI) or robotic process automation (RPA) have the potential to fundamentally change the economy and our everyday lives. ERGO is helping to shape this future and is exploiting the potential of new technologies - with a sense of proportion and taking into account any concerns and risks. The following, freely available documents demonstrate this innovation-friendly and balanced approach.
Guard rails for dealing with artificial intelligence
AI applications offer many opportunities, but there are also concerns and risks. ERGO will exploit the potential of AI for itself, taking these concerns and risks into account. Our core values are reflected in the Munich Re Group Code of Conduct. In addition, the following guard rails define how we as ERGO intend to use and leverage artificial intelligence and the underlying data.
White paper on process automation
In the whitepaper "Robotic Process Automation - Digitising quickly in complex architectures", ERGO experts share their knowledge regarding automation processes. This guide is approximately 35-page long and is based on their own experience and best practices for the development and implementation of process robots within ERGO. It contains numerous tips and recommendations for possible areas of application, technical implementation and the involvement of both management and employees in the digitalisation of a company using Robotic Process Automation (RPA). At ERGO itself, several hundred robots are already in use throughout the Group. Among other things, they help to automate and optimise customer-related processes in order to assist our employees.
White paper on ChatGPT and large language models
In the 30-page guide "ChatGPT and large language models: An introduction with a view to the insurance industry", ERGO experts from the fields of machine learning, conversational AI and innovations share their comprehensive knowledge of large language models (LLMs). In individual chapters, they explain in detail how these models work and their potential, as well as their possible risks and limitations. In addition, the authors use concrete practical examples to show how texts can be created, dialogues conducted or data classified with the corresponding tools. This applies to the insurance sector as well as to other industries.
White paper on multimodal generative artificial intelligence
ERGO Innovation Lab, the ERGO Group’s incubator for new ideas and spin-ins, has published a roughly 20-page white paper on multimodal generative artificial intelligence (GenAI). Titled “The next generation of generative artificial intelligence: Progress and Multimodal Applications in the Insurance Industry”, the paper provides a comprehensive overview of the latest developments and how multimodal GenAI models work.
Information security is paramount for the ERGO Group, and its Computer Security Incident Response Team (CSIRT) coordinates and responds to IT security incidents. The CSIRT ensures prompt and appropriate handling of incidents, collaborates with authorities and trusted partners, and provides services such as incident triage, response process, and digital forensics to ERGO Group.
Violations of laws and regulations
ERGO Whistleblowing Portal
If you become aware of a violation of the law or a significant violation of the rules of the Code of Conduct of Munich Re and its companies, you can report it to us here. You can also do so completely anonymously. In this case, please follow the security instructions in the whistleblower system.
Details of the reporting options can be found in the written rules of procedure.
Further information
