Motor vehicle insurance will be 10 percent more expensive next year, according to financial experts. Profitability only in sight in 2026.

Motor vehicle insurance will be 10 percent more expensive next year, according to financial experts. Profitability only in sight in 2026.

According to a report by the FAZ, car insurance is expected to become 10 percent more expensive next year. Hannover Re's subsidiary, E+S Rück, assumes that motor vehicle insurance will not be profitable even with this increase. The motor vehicle insurance sector could only become profitable again in 2026, provided that market participants behave in a disciplined manner.

Discussions with primary insurers point to a 10 percent increase in premiums in order to make profits again next year. However, according to Michael Pickel, the head of E+S Rück, a price adjustment of 20 percent would be necessary to make the comprehensive and liability policies profitable. However, such a price increase is unlikely to be feasible.

Even with a price increase of 10 percent next year, car insurers' earnings in 2024 would still be 8 percent below the profitability threshold. This would mean the combined ratio would be 108 percent. A combined ratio of 110 percent is currently expected for this year. Although the situation will improve in the future, it is becoming noisy