The work is an updated and significantly expanded new edition of the book of the same name from 2005. It deals with privately operated health and long-term care insurance in Germany and explains how and why this aspect of economic and social security works. The new edition necessarily presents actuarial methods. In addition to (future) actuaries as the main target group, economists and other professionals in health and long-term care insurance also benefit from this publication. The authors' primary focus was on providing a more comprehensive representation of German private health and long-term care insurance, but many innovations make this book a must-have for all professionals: numerous changes in the regulatory framework, the new version of the Insurance Contract Act, the EU Directive Solvency II, the ECJ ruling on.