Motor vehicle insurers are suffering from rising costs and will have to adjust premiums - experts warn of rising tariffs.

Motor vehicle insurers are suffering from rising costs and will have to adjust premiums - experts warn of rising tariffs.

According to a report from www.focus.de, the motor vehicle insurance industry is facing major challenges. Industry leader HUK-Coburg is expected to be in the red as the industry's combined ratio continues to rise. For every euro of income, insurers spend up to 1.09 euros on damages and administration. In order to get out of the loss zone, motor vehicle insurers will have to adjust their premiums. According to current projections, the industry will record a loss of over 2.5 billion euros this year. This impacts consumers as car insurance becomes more expensive. According to an analysis, market average tariffs have already risen by 8.8 percent. Existing customers therefore have to prepare for rising premiums. In addition to higher repair costs, the number of accidents also increases, leading to further damage. The insurance companies are already increasing prices and are trying to expand their customer base at the same time. Despite the high savings potential, however, only a few car owners have changed their insurance. Many customers remain loyal to their current provider, even though switching could save costs. It is expected that noticeable price increases will take place in the market in the future.

The rising premiums are impacting the market, consumers and the auto insurance industry as a whole. On the one hand, consumers have to expect higher costs for their car insurance. This can lead to some customers looking for cheaper alternatives or, in the worst case, foregoing insurance altogether. On the other hand, motor vehicle insurers will try to make up for their losses by increasing premiums. This can lead to a competitive shift in insurance