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No premium increase due to increasing damage in property insurance in 2024, but the insured sum will be adjusted due to inflation
According to a report by www.dasinvestment.com, 2024 will see a noticeable change in the property insurance industry. The Bavarian Insurance Chamber is not planning any premium increases due to increasing losses in building and household contents insurance. Instead, contributions should be adjusted based on inflation. The adjustment of insured sums and premiums in property insurance is based on index numbers that reflect price developments (inflation). Due to the ongoing increase in construction and real estate prices in Germany, the insurance amounts are being adjusted to ensure that customers are not underinsured in the event of damage. This is intended to ensure that customers can repair or rebuild their properties despite increased costs. The …
No premium increase due to increasing damage in property insurance in 2024, but the insured sum will be adjusted due to inflation
According to a report by www.dasinvestment.com, there will be a noticeable change in the property insurance industry in 2024. The Bavarian Insurance Chamber is not planning any premium increases due to increasing losses in building and household contents insurance. Instead, contributions should be adjusted based on inflation.
The adjustment of insured sums and premiums in property insurance is based on index numbers that reflect price developments (inflation). Due to the ongoing increase in construction and real estate prices in Germany, the insurance amounts are being adjusted to ensure that customers are not underinsured in the event of damage. This is intended to ensure that customers can repair or rebuild their properties despite increased costs.
The index adjustments for private homeowners insurance and household contents insurance are expected to increase by 7.5 percent and 5.20 percent, respectively, in 2024. These adjustments reflect increased property restoration costs and general inflation.
Another development in the property insurance industry is the call for compulsory natural hazard insurance due to increasing extreme weather events. However, it is noted that compulsory insurance alone can hardly solve the challenges of climate change and climate change adaptation for society as a whole. Rather, prevention, adaptation to climate impacts and state precautions are also viewed as important measures.
It remains to be seen how the planned index adjustments and the discussion about compulsory natural hazard insurance will affect the property insurance industry in Germany. The increasing number of extreme weather events and the federal government's activities in relation to natural hazards could lead to a realignment of insurance practice in this area in the long term.
Read the source article at www.dasinvestment.com