What is self-administration?
Where a body is self-administered, this means that the state (federation, the states) has authorised its administration by persons who have a direct interest in it (e.g. statutory insurance organisations, associations that represent professional interests).

This concept has both an historical basis and serves practical needs; as those involved have a direct interest, realistic and rapid decisions are likely to be made. A further advantage of self-administration is that it means that the state can devote itself to other matters.

Self-administration within the statutory insurance system
The Austrian social security system is administered by those to whom it provides insurance, as those who represent the relevant legal and professional interests are appointed to the various bodies of the insurance providers (e.g. the boards) where they freely manage the statutory insurance system. The state retains a supervisory capacity through its regulatory authorities.

The advantages of self-administration

  • Expert management in the interests of insured persons
  • Democratic procedures
  • Non-bureaucratic and low cost administration
  • Ease of decision-making – decisions can be rapidly made and implemented
  • Enhancement of the concept of solidarity
  • Independence from state control