Gloomy prognosis: Hannover Re: Primary insurance, reinsurance and motor insurance will become more expensive in 2023
Monday, 10/24/2022, 11:12 am
According to estimates by Hannover Re, Germans will soon have to pay significantly more for insurance. This does not apply to primary and reinsurance, but probably also to motor insurance.
The world’s third-largest reinsurer, Hannover Re, intends to significantly tighten prices due to high major claims and high inflation in Germany.
“While we are all still very much aware of the images of the devastating flood disaster of the past year, winter storms, droughts and forest fires show that natural disasters are increasing in Europe this year,” said Germany boss Michael Pickel according to a statement at the industry meeting on Monday in Baden-Baden . “All of this makes further price increases in both primary insurance and reinsurance indispensable.”
On average, tariff increases in the double-digit percentage range are required for motor vehicle insurance, according to a presentation by the German subsidiary E+S Rück on Monday. As the largest motor vehicle reinsurer in Germany, E+S Rück has a particularly good insight into the tariff structure of primary insurers such as Huk Coburg and Allianz.
Hannover Re: Motor vehicle insurance is also likely to become more expensive
Unlike comparison portals such as Verivox and Check24, the company’s forecast not only refers to new contracts, but also to existing contracts. The increases in motor vehicle liability and fully comprehensive insurance are likely to be similarly high, and somewhat lower in partially comprehensive insurance.
The reinsurer cites increased costs for spare parts and repairs as reasons for the premium increases. Without “strong tariff adjustments”, the expenses for claims, administration and sales are likely to significantly exceed the premium income in the industry in the motor vehicle business in the coming year, the presentation goes on to say.
The pressure to restructure in the industrial and commercial business is also continuing. In addition, damage from cyber attacks on computer systems would increase.
Activists stick themselves in the Porsche pavilion – then they whine
More news about the energy crisis:
Due to an adjustment of the Federal Immission Control Act, many German stove owners have to react. If certain limit values are not met, the furnaces must be converted or dismantled.
The traffic jam off the coast of Spain is getting longer and longer. More than 30 liquid gas ships are now waiting to be unloaded. Experts are already warning that freighters will be looking for alternatives outside of Europe.
The original of this article “Hannover Re: primary, reinsurance and motor insurance will be more expensive in 2023” comes from chip.de.
dpa/CHIP
