2023-09-01 14:35:16
Second-round effect: This is what economists call – roughly simplified – the situation that inflation leads to higher wage settlements, which in turn makes prices for goods and services more expensive. That is exactly what is hitting German car insurers with full force this year. While some were still able to insure cars last year and still make a profit, this year they are no longer able to do so across the board.
Salaries in garages have risen, spare parts are significantly more expensive if they can be obtained at all due to disrupted supply chains. As a result, repairing accident damage takes longer and is more expensive. It will be interesting to see to what extent the German insurers pass on the double-digit increase in costs to the motorists, who are still waiting for the very high fuel prices at the pump.
One can only hope that insurers will exercise caution and not pass on the full extent of the price increases to their customers. They could afford it. Because hardly any insurer is only active in the motor vehicle sector. And in other areas, the companies in the sector achieve decent business and are financially solid overall. Diversification would therefore be possible.
Published/Updated: Recommendations: 61 Eric Mayer Published/Updated: , Susanne Preuß, Hamburg Published/Updated: , Recommendations: 36
There is also hope that the motor vehicle insurance market is highly competitive and drivers are more willing to switch than other types of insurance.
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