Motor vehicle insurance premiums are rising by more than 14 percent - experts also expect premium increases for other property insurance

Motor vehicle insurance premiums are rising by more than 14 percent - experts also expect premium increases for other property insurance

According to a report by www.dasinvestment.com,

Current data suggests that property insurance companies in Germany could charge higher premiums in the coming years as claims inflation leads to rising claims costs. Financial regulator Bafin has expressed concerns about claims inflation and plans to intervene if necessary. Experts believe insurance companies will have to increase premiums to offset rising costs. This will probably particularly affect motor vehicle insurance, as premium increases there were particularly high.

Claims inflation has various impacts on the insurance market and consumers. As claims costs rise, insurance companies will likely need to increase technical reserves to reflect inflation and rising claims expenses on their balance sheets. Expected premium increases could also put a lot of strain on consumers, particularly in areas such as car insurance.

The impact on the insurance market could lead to changes in companies' business strategies as they have to offset increases in premiums to avoid losses. As a result, competition in the market could change and consumers could be forced to pay higher premiums.

Another expected effect could be that rising premiums lead some consumers to cancel their insurance, which could lead to a potentially higher number of uninsured vehicles or uninsured properties.

Overall, it is likely that claims inflation will lead to significant changes in the insurance market as insurance companies are forced to respond to rising claims costs. Consumers may have to prepare for higher insurance premiums, particularly in the area of ​​property insurance.