HUK-Coburg facing price increases in the automotive division

HUK-Coburg facing price increases in the automotive division

HUK-Coburg, Germany's largest car insurer, is faced with the need to raise prices in its motor vehicle division again, despite net profit rising to 298 million euros in 2023. This increase was driven by positive capital results. A deficit in the motor vehicle insurance division of almost 547 million euros was identified, which is partly due to rising spare parts prices, increased damage from storms and an unexpectedly high number of accidents and claims reports.

With 13.9 million insured vehicles, HUK leads the German market and is therefore ahead of Allianz. There have already been two tariff increases for existing customers in 2022 and 2023, which amounted to a total of 15 percent. Further adjustments to the contribution rates could be imminent as the earnings and results situation continues to be challenging. HUK-Coburg is not alone with its losses in the motor vehicle division, as the General Association of the German Insurance Industry also predicted a deficit in this industry due to increased costs.

Despite the difficulties in the motor vehicle division, HUK-Coburg recorded positive business results overall, with premium income from all divisions increasing by 6.2 percent to nine billion euros. The investment result even improved by 86 percent to 931 million euros, boosted by increased interest rates and share prices. The annual surplus reached 300 million euros, which is more than twice as high as the previous year.