Expected effect due to inflation, insurance prices in France will increase significantly in 2024. The specialized research firm, Fact and Figures, estimates that the price increases of auto and home insurance will be 6 to 8% in 2024. Also if, recently, the contracts corresponding to these two products have not recorded a marked increase in France, the probability of seeing this sector impacted, by 2024, remains high. France will thus experience strong increases in this sector, which will have repercussions on the profession. Consumers should therefore expect big changes, they who have seen much more moderate developments.
As for the insurance companies, the pressure will be increasingly important. To compensate for the loss of purchasing power of employees, wage increases could average 4% to 5%. Therefore, insurers will now face an increase in their rates, such as the electricity bill. Repairs will also be increasingly expensive, as prices for spare parts have soared. The average cost of a mirror, for example, increased by 6% between 2021 and 2022, or as much as 11% for SUV models. Faced with this situation, the final size of the price increase will be conditioned by competitiveness and competition. The companies, for their part, will probably not proceed with the application of the same increase levels.
It should be noted that the insurance sector, pressured by Bercy, undertook in September with Bruno Le Maire, minister of the Economy, to keep the increase in prices on average below inflation, the latter at 6.2%.
Sami Nemli with agencies / Les Inspirations ECO
