Car and Home Insurance: Expectations for Price Increases in 2024

Details

Published on
Wednesday October 25, 2023 5:25 p.m.
by the Meilleurtaux Editorial Team

In a subtle game of unsaid words, the executive and the insurers are jealously guarding their cards regarding the prospect of a price increase in 2024, despite their past commitments. Last year, insurers promised the government, through Florence Lustman, to keep the increase in average auto and home insurance premiums below inflation as much as possible for 2022 and 2023. A commitment which generally held. But what does the year 2024 have in store for policyholders at a time when the Minister of the Economy is supporting the purchasing power of the French?

An unofficial announcement that leaves you perplexed

On August 31, Bercy announced to L’Argus its intention to renew its appeal to insurers to contain as much as possible the surge in car insurance price and housing. However, the subtle message from the Minister of the Economy and Finance seems to have a rather discordant response among companies.

To date, no official meeting has been scheduled for this fall, even though inflation rose to +4.9% at the end of September.

Questioned by L’Argus, France Assureurs maintains its commitment to implement all necessary means to limit the increase in prices below inflation over the period 2022-2023.

However, this has not dispelled the doubt surrounding the contracts being revised for next year, which are already reaching members while previous contracts are coming to an end.

I find the best car insurance

Inflation and the increase in claims involved

For several months, insurers specializing in claims have been anticipating an inevitable increase in premiums. This forecast results from the accumulation of various factors, such as climatic hazards, urban riots, rising costs related to construction and repairs, as well as growing costs associated with reinsurance in the event of damage.

ImportantAccording to calculations by the actuarial firm Addactis France, home insurance costs could increase by +5.5% to +7.5% in 2024 in order to simultaneously cope with inflation and the increase in claims. Regarding auto insurance, an increase of around +4% to 5% is also expected.

This insurer unequivocally declares that companies are free to apply their pricing policy on January 1, 2024. It would be unthinkable for the Executive to continue to exert pressure on insurers. In addition, the previous year, insurers had asked Bercy to take into account the use of second-hand, less expensive spare parts, in exchange for their efforts to moderate prices.

However, from their point of view, the results are not up to par. Insurers are also awaiting concessions from the Ministry of the Economy regarding the establishment of a reuse sector. For the moment, it seems that the file has made little progress.