The biggest insurance companies in the world are paying millions of dollars in premiums to help their global brands cover the fallout from a devastating auto-insurance scandal that has left tens of thousands of workers and their families without health insurance.
Deutsche Automaker AG, the world’s biggest car maker, will pay $4 billion in insurance premium payments for 2016, with an additional $2 billion due next year, according to a regulatory filing filed with the U.S. Securities and Exchange Commission on Thursday.
The payments, which are not yet publicly disclosed, represent a significant chunk of the company’s annual insurance payout of $14.5 billion, the filing showed.
They represent about one-third of the $40 billion the German car maker has been paying in premiums for 2017, according the filing.
The company will pay the premiums through an entity it created called Deutsche Automobile Insurance Fund.
Deutsche Automobiles said it had $4 million of $4,000 insurance funds in the Fund.
The German company said in its filing that it has already received $431 million in insurance premiums for 2016 from its insurance business, the rest of the money will be paid to its reinsurance and risk management business.
The company did not provide details about the amount of the premium payments or the source of the funds.
The announcement comes as the U, United Kingdom, Australia and New Zealand, which collectively account for about one third of the world auto market and which are among the top 10 buyers of auto insurance in the U