Comeback outlook: Life insurers hope for better business in 2024 through rising interest rates and more attractive savings contracts.

Comeback outlook: Life insurers hope for better business in 2024 through rising interest rates and more attractive savings contracts.

According to a report from www.capital.de,

The insurance industry can look forward to better business in the coming year. Despite the economic burdens and economic uncertainty, the mood in the industry has suffered. The analysis shows that the forecasts for 2024 are still quite positive. A comeback is expected in the life insurance sector in particular, as savings contracts are becoming attractive again due to rising interest rates.

The impact on the insurance industry can be influenced by various factors. According to experts, there is hope that customers will have more money available for insurance again due to falling inflation and rising wages. This could lead to a recovery in insurance business, particularly in the areas of biometric risks, life and pension insurance. Savings contracts are also becoming more attractive again due to the interest rate increases by the European Central Bank. Insurers can promise higher returns and are even planning to raise the maximum interest rate to 1 percent from 2025.

However, not all areas of the insurance industry are equally positively influenced. A negative trend is observed in property and casualty insurance due to increased costs. Contributions increase and burden consumers. Private health insurance costs are also expected to rise as medical treatments become more expensive and life expectancy increases.

Overall, it can be said that the insurance industry faces challenges, but can also benefit from positive developments. It remains to be seen how the forecasts for the coming year will actually impact the market, the consumer and the industry.