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Car insurers are currently struggling with losses. Customers are therefore facing price increases, but not only in this sector.
Munich – The price war among insurance companies of recent years is over, and in the future customers will probably have to pay more. This will be felt especially in the area of motor insurance. This is where the price war was fiercest, but this is also where the insurers’ losses are greatest.
By 2023, motor insurers had to accept a loss of more than three billion euros and GDV CEO Jörg Asmussen predicted a loss of up to two billion for this year as well, although prices have already risen. According to the Verivox motor insurance index, car insurance has already become 20 percent more expensive on average over the past twelve months. However, consumers can also save money despite more expensive motor insurance.
Building insurance and private health insurance are also becoming more expensive
According to an analysis of the Welt Consumers can also expect higher surcharges for building policies and private health insurance. According to Verivox, the reasons for this are increases in the value of real estate compared to the new value factor and the increased number of insurance claims, which is based on an increase in extreme weather conditions. According to Handelsblatt The increase in private health insurance has to do with the updated mortality tables.
Accident damage: This is becoming increasingly expensive for consumers, which is now also affecting insurance premiums. © Robert Michael/dpa
Inflation is currently falling significantly, but the price war is over. In the case of motor vehicle insurance in particular, this was fueled by frequent online purchases (24 percent in 2023 compared to 19 percent for other products) and the ability to cancel annually. HUK Coburg, Signal Iduna, Provinzial and DEVK suffered losses, according to “Versicherungsmagazin”.
Loss-making car insurance companies get into trouble with financial regulators
The financial regulator Bafin believes that the high loss for motor insurance is not sustainable in the long term. Julia Wiens, the executive director responsible for insurance, said in an interview: “In motor insurance in particular, the premium increases were not significant enough across the industry to make the business profitable.” The authority will not accept loss-making sectors in the long term.
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For this reason alone, insurance companies are likely to make significant improvements. But not all insurance companies are in the red. According to research by Welt, 16 of the 20 largest German insurance companies made a profit. Overall, only Generali Deutschland, Allianz Lebensversicherungen, Debeka and the Versicherungskammer Group recorded a loss. Depending on the type of reporting, the largest gains were made by HDI Global SE (plus 12.0 percent gross premiums) and Würstenrot & Württembergische AG (plus 9.8 percent total insurance sales).
W&W complains about sharply rising prices in car repair shops
W&W has once again expanded key portfolio sizes. Despite the current turmoil on the real estate markets, new lending in the residential segment achieved a higher increase of 18.4 percent than the industry as a whole. However, CEO Jürgen A. Junker qualified the good result: “As with other insurers, the high level of claims inflation and sharply rising prices in car repair shops continue to weigh on the result. At the peak, more than 200 euros per hour are now being charged.”
He continued: “The changed underwriting policy of the reinsurers with sharply increasing deductibles and higher premiums at the same time is also making itself felt.” Nevertheless, despite the weak economic development in Germany and the volatile market environment, the group is “operationally on track”. According to the car expert Stanilas Stürmer, the trend towards more expensive repairs will continue, as he already said in April. tagesschau.de said. According to VHV Insurance, increased spare parts prices, more expensive repairs and higher rental car costs are the price drivers. Find out here when it is worth changing provider if the premiums are higher.
