Status: 01/26/2023 3:20 p.m
In 2023, the insurance industry will turn the price screw. Many auto insurers will increase their rates. Private health insurance and homeowners insurance are also likely to become more expensive.
The high rates of inflation are also leaving their mark on the German insurance industry. For example, rising spare parts prices and workshop costs lead to higher claims expenditure, said the President of the General Association of the German Insurance Industry (GDV), Norbert Rollinger, with a view to the car market.
Noticeable increase in premiums in motor vehicle insurance
For consumers, this means: It will be more expensive. The German insurance industry expects price increases for motor vehicle protection in 2023. A noticeable increase in premiums is expected here, emphasized Rollinger. Many car insurers are likely to have increased their premiums by the turn of the year. Market leader HUK-Coburg had already signaled that it would increase the contributions for 2023.
In this way, the insurers are also complying with a request from the responsible Federal Financial Supervisory Authority (BaFin). BaFin Executive Director Frank Grund had warned that insurers needed capital and liquidity buffers because of inflation.
Home insurance probably 16 percent more expensive
Across all types of insurance, GDV expects premium growth of around three percent for the current year. In property and casualty insurance, premiums are likely to rise by six percent and in private health insurance by 3.5 percent.
The premiums for residential building insurance are also likely to rise, as rising material and tradesman costs are also causing insurance benefits to rise. “Even if the construction industry cools down, we are expecting a premium increase of 16 percent overall,” said Rollinger.
Stable premiums for life insurance
Uncertainties arise for the industry above all in life insurance, where the GDV expects stable contributions on average. It is true that this type of old-age provision is becoming more attractive again for many people due to rising interest rates.
At the same time, “the rise in the cost of living caused by inflation means that many people invest less money in their retirement provision,” Rollinger said. For example, new business in the Riester pension collapsed by 60 percent.
GDV presents reform concept for Riester pension
Against this background, the association also presented its concept for reforming private old-age provision. “We are still of the opinion that Riester can be reformed,” emphasized the GDV President. “But we also have the offer for a new start in our luggage: the citizen’s pension.” According to the proposal, the state would subsidize every euro paid in by the insured up to an upper limit with a subsidy of 50 cents.
Unlike the Riester pension, a high level of standardization for the citizen’s pension saves on time-consuming bureaucracy. “And of course the products could also be sold digitally,” said Rollinger. A guarantee level lowered to 80 percent would enable a higher return than the Riester pension.
Criticism of financial turnaround on GDV pension
The non-governmental organization Finanzwende reacted critically to the GDV proposals. “With the GDV pension, the insurers are providing a solution for themselves, but not for the citizens,” said financial transition expert Britta Langenberg.
The core problem of the customers – far too high costs – is not really addressed. In the future, insurers wanted to “steer even more tax money into their own coffers”. According to the coalition agreement, the traffic light government is planning a reform of private old-age provision.