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Financial expert: Rising vehicle insurance premiums forecast - GDV losses demand higher premiums
According to a report by www.tagesschau.de, car insurers in Germany have posted a significant loss in 2023. This is primarily due to the rising costs of vehicle repairs, which are affecting insurance companies' profits. This development is expected to result in drivers having to pay higher premiums to maintain their vehicle liability and collision insurance. According to forecasts by the General Association of the German Insurance Industry (GDV), premiums in the industry will rise by around ten percent. Due to the underwriting loss of 2.9 billion euros last year, a catch-up effect on prices is to be expected. The rising prices for spare parts and higher labor costs in...
Financial expert: Rising vehicle insurance premiums forecast - GDV losses demand higher premiums
According to a report by www.tagesschau.de
Motor vehicle insurers in Germany posted a significant loss in 2023. This is primarily due to the rising costs of vehicle repairs, which are affecting insurance companies' profits. This development is expected to result in drivers having to pay higher premiums to maintain their vehicle liability and collision insurance.
According to forecasts by the General Association of the German Insurance Industry (GDV), premiums in the industry will rise by around ten percent. Due to the underwriting loss of 2.9 billion euros last year, a catch-up effect on prices is to be expected. The rising prices for spare parts and higher labor costs in workshops are the main causes of the financial losses suffered by motor vehicle insurers.
The burdens also lead to further challenges for insurers as premium increases have not been enough to compensate for the losses. Repair costs are expected to continue to rise. As a result, motor vehicle insurance premiums are expected to rise by a further 7.7 percent this year.
Overall, the insurance industry in Germany only grew by 0.6 percent in 2023. Life insurance premium income fell by 5.2 percent, which was more than expected. The difficult market has several factors, such as weak wage developments, consumer restraint and rising interest rates, which have also led to a declining demand for life insurance policies.
According to GDV, a premium increase of 3.8 percent is expected in 2024. This positive outlook results from higher interest rates and shorter terms of insurance products, as well as a stable interest rate policy from the central banks.
The rising cost of car insurance is expected to have a direct impact on consumers who will have to pay higher premiums. Insurance companies will also feel the effects of rising repair costs and will have to respond to protect their profits. The market as a whole could change due to the increased cost of car insurance, which could lead to adjustments in competition and new strategies.
Read the source article at www.tagesschau.de