As of: January 25, 2024, 4:34 p.m
By: Lisa Mayerhofer
Comments
Press
Split
Insurers are concerned about the red numbers in motor vehicle insurance.
According to experts, drivers will soon have to prepare for significantly more expensive policies.
Berlin - Bad news for drivers: In view of the billions in losses suffered by motor vehicle insurers, they have to prepare for significantly rising premiums for their liability and comprehensive insurance policies.
On Thursday in Berlin, the General Association of the German Insurance Industry (GDV) predicted premium growth in the industry of ten percent.
However, how the premiums actually develop is a matter for the individual companies.
GDV President Norbert Rollinger believes that this jump in premiums is not yet enough for motor vehicle insurers to be in the black again in 2024: “We will need another year.”
Motor vehicle insurance: Insurers fear repair costs will continue to rise
Last year, the industry generated an underwriting loss of around 2.9 billion euros with motor vehicle policies.
“For every euro collected there was an expenditure of 1.10 euros,” said Rollinger at the GDV’s annual press conference.
“It is also to be feared that repair costs will continue to rise.” The prices for spare parts, but also for higher wage costs in the workshops, have been causing problems for insurers since the end of the corona pandemic.
Claims costs rose by 12.7 percent in 2023.
But only part of the premium increases reaches the providers because drivers take the opportunity and switch to another insurer who offers cheaper prices for new insurance policies.
Anyone who owns a car will have to prepare for higher vehicle insurance premiums in 2024.
© Fabian Sommer/dpa
The red numbers in motor vehicle insurance had an impact on property and accident insurance, the largest division of which is car policies.
Profit there fell by more than half to 1.5 billion euros in 2023, although contributions grew by 6.7 percent to 84.5 billion euros.
The GDV predicts an increase of 7.7 percent for 2024.
Insurance industry will hardly grow in Germany in 2023
Overall, the insurance industry in Germany hardly grew in 2023.
Contributions rose by 0.6 percent to 224.7 billion euros.
The reason for this was the weak business with single-premium life insurance policies, i.e. pure investment products, which were less in demand due to rising interest rates and more attractive competing offers from banks.
At the middle of the year, the GDV had predicted a premium increase of 1.3 percent across all sectors.
Association President Rollinger was still “quite satisfied” given the difficult environment.
For 2024 he expects premium increases of 3.8 percent.
To do this, however, the downward trend in life insurance must be stopped.
There alone, premium income fell by 5.2 percent in 2023 - more than expected.
The GDV blames the economy, weak wage developments and consumer restraint for this.
Managing Director Jörg Asmussen is more confident for the current year after insurers have taken countermeasures with higher interest rates and shorter terms for their products.
However, it can be assumed that the central banks will keep their interest rates stable at least until the middle of the year, which makes short-term investments more attractive than lifelong pension insurance.
Asmussen hopes “by and large for a black zero” in contributions.
(lma/Reuters)