Insurance spending in 2024 at an all-time high - expert predicts high costs from natural disasters

Insurance spending in 2024 at an all-time high - expert predicts high costs from natural disasters

According to a report by www.n-tv.de, annual contributions will be due for many insured people with the new year. The cost of insurance has increased by an average of several hundred euros in recent years, which is particularly noticeable at the beginning of the year. In particular, private property and accident insurance such as liability, household contents or occupational disability insurance make up the largest share.

According to the Federal Statistical Office, private households in Germany paid an average of 1,596 euros for insurance in 2022, which is around 39 percent more than in 2012. A large part of this was for private property and accident insurance and motor vehicle insurance. The rising premiums are partly caused by costs that insurers have to bear due to extreme weather such as hail, storms and floods. In Germany alone, natural disasters cost insurers almost five billion euros in 2023, with property insurers having to bear the majority of this.

These developments have impacts on various levels. On the one hand, rising insurance premiums are placing a financial burden on private households, which can affect their consumption and saving habits. The increased costs mean damage for the insurance industry, especially with regard to motor vehicle insurance, which had worse than average results due to frequent hailstorms in the summer. However, the long-term impact of these developments on the insurance market and consumers depends on various factors such as regulation and further natural disasters.

Overall, the rising insurance costs and the burden on insurers caused by extreme weather events show the need for comprehensive analysis and adjustment of insurance policies, premium calculations and risk assessments in order to stabilize the financial burden for insured persons and companies in the long term. This could also lead to increased interest in alternatives such as retirement planning and other forms of financial security.