Financial expert warns: German insurers in serious crisis - inflation and rising costs are weighing on the industry.

Financial expert warns: German insurers in serious crisis - inflation and rising costs are weighing on the industry.

According to a report from www.versicherungsbote.de, German insurers are in a difficult phase. HUK-Coburg boss Klaus-Jürgen Heitmann described the market as “brutal” as motor vehicle insurers raise premiums due to high inflation and rising claims costs and still expect losses. This leads to a price war and consumer reluctance, leading to insurers expecting to be in the red.

New business in life insurance has already collapsed because savers have more alternatives with rising interest rates on the capital market. In addition, the compulsory insurance limit for private comprehensive health insurance is increasing, which limits the potential customer base. Generali Germany boss Giovanni Liverani emphasizes the need for government support in insuring against natural hazards, as rising prices for home insurance and natural hazard protection are putting strain on insurers.

The problems on the insurance market are being monitored by the European insurance regulator EIOPA, which wants to introduce a dashboard to monitor the development of natural hazards. This shows that government support and more prevention are necessary to overcome the challenges in the insurance market.