The most unprofitable motor vehicle liability insurers: A look at the numbers!

The most unprofitable motor vehicle liability insurers: A look at the numbers!

The latest analysis of the motor vehicle liability insurance market shows that numerous providers have recorded high losses in recent years. According to the results of the “Industry Monitor 2024: Motor Insurance”, published by V.E.R.S. Leipzig GmbH, ten of the 50 largest market participants had underwriting losses between 2018 and 2023. The report includes the most important key figures from the dominant providers, which cover around 90 percent of the market. Particularly noticeable is Allianz Direct, which is considered the most unprofitable insurer in the industry with a combined ratio of over 115 percent. At its peak, this rate was as high as 115.5 percent, which illustrates the company's difficulties.

Other insurers that were also clearly in the loss zone are Nürnberger Allgemeine Versicherungs-AG, BGV and DEVK Allgemeine. Nuremberg had a combined ratio of over 108 percent. Providers such as Alte Leipziger and R+V Direktversicherung also achieved rates between just under 106 and almost 104 percent, other unprofitable companies include Dialog Versicherung, DA Deutsche Allgemeine and Ergo Versicherung. A detailed look shows that the DEVK was never below the case severity of 100 percent, at least in the six years under consideration, with the highest rate being 112.2 percent in 2022.

Damage costs and causes

The reasons for the increase in claims expenses are complex. Benefiting from increasing claims frequency and high inflation, many insurers report an increased share of operating costs, which was caused, among other things, by the expansion of sales activities on the Internet. Allianz Direct recorded the highest combined ratio of 138 percent in 2022, further highlighting its difficulties.

In contrast, R+V24 recently achieved a turnaround and achieved profits of more than ten cents per euro of contributions. While Alte Leipziger was only in the black in 2018 over the entire period under review, other providers such as R+V24 continue to struggle with high loss rates. The estimate of the combined combined ratios shows how precarious the current situation is for many of the large providers in the market.

Market changes and forecasts

The report's findings not only reveal the difficulties faced by various providers, but also provide a comprehensive insight into the dynamics of the insurance market. The analysis and numerous other key figures are available as a PDF for 1,487.50 euros and could be of considerable importance for industry players in making strategic decisions and adapting business models accordingly.

As market developments show, motor vehicle liability insurance remains a challenging field of activity. Future trends and adjustments by providers will be crucial in order to survive economically and operate profitably.

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The motor vehicle liability insurance market, characterized by challenges and losses, is in focus. The upcoming competitions and developments in the Pokémon universe, however, show a different dynamic side of the current situation. Those interested should follow advances in the insurance industry as well as the latest news from the world of Pokémon.