Property and casualty insurance: premium growth of 6.7 percent, but rising claims expenses - financial expert warns of further premium increases

Property and casualty insurance: premium growth of 6.7 percent, but rising claims expenses - financial expert warns of further premium increases

According to a report by www.mobiflip.de, last year in property and casualty insurance was characterized by adjustments in claims expenses, particularly due to price increases for vehicle repairs. Although the division recorded premium growth of 6.7 percent to 84.5 billion euros, claims expenses rose significantly faster than premiums at 12.7 percent. In motor insurance in particular, the price increase led to an underwriting loss of around 2.9 billion euros, and the division's underwriting profit more than halved to around 1.5 billion euros.

For the current year, the General Association of the German Insurance Industry (GDV) expects premium growth of 7.7 percent in property and casualty insurance. Catch-up effects are expected, especially in motor insurance, and rising repair costs could lead to a further premium increase of ten percent.

The automotive industry also has doubts about its growth, as a survey by KPMG of more than 1,000 automotive managers shows. Only 34 percent of those surveyed have confidence in the industry's growth prospects for the next five years.

This development has potentially far-reaching implications for the market and consumers. A further ten percent increase in vehicle insurance premiums would significantly increase the expenses of many drivers and possibly lead to a change of insurance provider. In addition, trust in the automotive industry and its future prospects could continue to decline, which would affect investments and innovations.

It remains to be seen how individual insurers will react to the rising costs and whether they will adjust premiums accordingly. Customers should increasingly consider comparing car insurance this year in order to get the best possible conditions. Given the uncertainties in the industry and the forecast increases in premiums, transparency and choice in the insurance market is becoming more important than ever.