Legal protection insurance: Huk-Coburg dominates, Deurag in crisis!

Legal protection insurance: Huk-Coburg dominates, Deurag in crisis!

The current analysis of legal protection insurance shows a mixed picture of market participants from 2018 to 2023. According to the report by Insurance journals Deurag Deutsche Rechtsschutz-Versicherung AG was the only major player to end up in the insurance loss zone. While five of 25 large market participants spent more on claims and costs than they received in premiums, HUK-Coburg had the best combined ratio of under 90 percent.

The “Industry Monitor: Legal Protection Insurance 2024” from V.E.R.S. Leipzig GmbH also notes that Huk24 AG had the worst ratio with a combined ratio of 112.5 percent. Debeka Allgemeine Versicherung AG, on the other hand, managed to achieve the best performance with a rate of 82 percent. What is striking is that Deurag had a combined ratio of almost 103 percent over the six-year period and was only in the black in 2022, after coming under pressure in 2020 with a ratio of around 111 percent.

The industry is in the red

Allianz Versicherungs-AG and Örag Rechtsschutzversicherungs-AG barely made it into the profit zone after Allianz was in the red from 2020 to 2022. The largest loss, of 13 cents per euro of contributions, occurred in 2020. Allianz attributes these losses to an increase in lawsuits and damages as a result of the corona pandemic. Örag, on the other hand, recorded a loss rate of 101.3 percent in 2021, while Roland Rechtsschutz-Versicherungs-AG and Arag SE had rates of around 95 percent.

In another segment, the highly competitive motor vehicle insurance market, conditions are similarly challenging. According to that Insurance messengers In 2022, 25 of the 50 largest motor vehicle insurers were in the red, raising the industry's average combined ratio to 102.42 percent. In the same year, HUK-Coburg achieved a market share of 14.9 percent with gross premium income of 4.34 billion euros and was able to record 24,049,961 motor vehicle contracts, which ensures them the lowest average premiums in the industry.

Market leadership in the motor vehicle insurance sector

Allianz, on the other hand, has a market share of 12.66 percent and was able to increase premium income by 76.01 million euros. With a contract portfolio of 12,899,352 motor vehicle policies, Allianz is showing positive development, even if the combined ratio of 97.39 percent still needs improvement compared to HUK-Coburg. This has the lowest average premiums, while Allianz has the ninth most expensive premiums at 285.82 euros per contract.

Klaus-Jürgen Heitmann, head of HUK-Coburg, has already called for significant premium increases to avoid future losses. The increasing pressure from repair costs, caused by technological advances and digitalization, is increasing competition in the motor vehicle insurance market.

The “Automotive Insurance Industry Monitor 2023” provides comprehensive key figures on the 50 largest companies in this area and illustrates the challenges that providers are faced with.