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Claims settlement and drug costs are increasing. Contribution increases are therefore likely, explain actuaries.
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The high inflation rate will also affect insurance costs. The German Association of Actuaries (DAV) said on Monday that rising construction prices would have an impact on residential building insurance, while car insurance premiums should rise because of the high repair costs. Increasing production costs for medicines could also drive up the costs for private health insurance, explained the deputy DAV chairman Maximilian Happacher. The DAV is the professional association of actuaries.
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Another problem arises in life insurance: If you want to secure your standard of living in old age, you have to put aside more money when inflation rates are high, says Happacher. Interest rates are also rising, but so far they have not been nearly enough to compensate for the loss of purchasing power due to inflation: “The real interest rate is more negative than ever before,” said Happacher.
consequences of the corona pandemic
The corona pandemic, on the other hand, has no direct impact on life insurance for the time being, explained DAV CEO Herbert Schneidemann. Last year there were more than a million deaths in Germany for the first time since 1946, and mortality had already increased in 2020, partly because of the corona pandemic. However, the figures were still within the range of fluctuation already taken into account in the life insurers’ calculations.
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So far, there has been no significant increase in the number of cases in disability insurance due to the pandemic. Although “one or the other case, especially in the psychological area, is recognizable,” said Schneidemann. In many cases, however, it is difficult to say whether the infection with the virus or psychological problems as a result of long periods of short-time work led to the inability to work. A superimposition of the corona infection with pre-existing physical or mental illnesses can often be observed.
Infection is not a reason for denial of insurance
A previous corona disease is not in itself a reason for refusing customers to take out disability insurance or private health insurance, emphasized Schneidemann. “However, like all previous illnesses, it must be stated in the application process and may lead to premium surcharges or exclusions from benefits.”
It is not usual to ask about the vaccination status before taking out insurance, said Schneidemann. Although the vaccination against the corona virus reduces the risk of a serious illness, he does not consider such queries to be appropriate. “Otherwise, the insurance companies would have to ask about check-ups and other preventive measures, for example. I don’t think it makes sense to pick out a single criterion now.”
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