In property and casualty insurance, the past year was characterized by subsequent adjustments to claims expenses such as construction costs or increased prices for car repairs, including the spare parts required for them. The division recorded premium growth of 6.7 percent to 84.5 billion euros. But at 12.7 percent, claims expenses increased significantly more than the development of premiums.
Every euro in premiums resulted in a loss of 1.10 euros
In motor vehicle insurance alone, the increased prices resulted in an underwriting loss of around 2.9 billion euros. “For every euro collected there was an expenditure of 1.10 euros,” said Rollinger. Overall, the division’s underwriting profit fell by more than half to around 1.5 billion euros.
Further increase in repair costs feared
For this year, the GDV is forecasting premium increases of 7.7 percent in property and casualty insurance. “The development in motor vehicle insurance in particular will probably be characterized by catch-up effects,” said Rollinger. “It is also to be feared that repair costs will continue to rise. We are therefore expecting a premium increase of ten percent for 2024.” How the current situation will specifically affect premiums is the responsibility of the individual insurers.
However, the German insurance industry “held up well” across all lines of business in the past financial year and is therefore “cautiously optimistic” about the current year 2024. Across all lines of business, insurers say they saw a slight increase in premiums of 0.6 percent to 224 in 2023. 7 billion euros. For this year, premium growth of 3.8 percent is expected against the backdrop of rising nominal wages and declining inflation.
“If you consider the difficult general conditions such as the global uncertainties, we can be quite satisfied with the result for 2023,” said the President of the General Association of the German Insurance Industry (GDV), Norbert Rollinger, last Thursday at the association’s annual media conference in Berlin.
Christmas floods cost 200 million euros
The association also focused on two central topics, such as the planned reform of private and company pension schemes and protection against extreme weather events.
With a view to the most recent flood events, the general manager of the GDV, Jörg Asmussen, found clear words: “States and municipalities have major deficits in prevention and adaptation to climate impacts. Many problems, especially in flood protection, are homemade and could definitely have been prevented.” Asmussen gave the loss figures for the floods in northern and central Germany around Christmas for the first time: “According to our estimate, the insured losses are at 200 million euros.”
The GDV rejects compulsory insurance for natural hazards, as is currently being demanded by many political decision-makers. The association advocates the implementation of a well-thought-out overall concept that includes various well-coordinated steps (we reported several times).
Political demands
However, the insurance industry now believes that three measures are urgently needed. First: No new buildings in designated danger areas. Second: Prevention and adaptation to climate impacts belong in the state building regulations. And thirdly: “The public sector should clearly identify the danger situations via a nationwide natural hazards portal,” demanded Rollinger Rollinger. Only if the dangers are transparent will those responsible implement preventive measures. “Other countries like Austria and Switzerland are years ahead of us here,” says Norbert Rollinger.
2024-01-29 05:38:45
#Motor #vehicle #insurance #GDV #officially #talking #loss #billion #euros
