Due to the rapidly increasing prices in Germany this past year, many consumers have had noticeably less money to spend and have had to cut back on expenses. This has caused some policyholders to forgo sensible insurance for cost reasons, according to industry expert Herbert Schneidemann.
The Federal Statistical Office (Destatis) reported that the annual inflation rate was 7.9 percent higher than in 2021, when it was 3.1 percent. This was mainly due to the extreme price increases for energy products and food since the beginning of the war in Ukraine. In December, the inflation rate measured as the change in the consumer price index compared to the same month last year was 8.6 percent.
The insurance industry is also being affected by the rising costs, with insurers seeing noticeable increases in claims settlement, leading to higher premiums. This is most noticeable in car insurance, and further short-term price increases are expected. Property and casualty insurance, health insurance, and life insurance are all expected to become more expensive.
The higher interest rate level associated with inflation could have a relieving effect in the medium term, but the consequences of inflation for private health insurance companies have yet to be seen.
Which insurance policies are now becoming particularly expensive due to the crisis and war-related special effects? Property and casualty insurance, health insurance, and life insurance are all expected to become more expensive. Car insurance premiums have already seen an increase, and further short-term price increases are expected. Private health insurance companies are currently less affected by inflation, but the higher interest rate level associated with inflation could have an opposite, relieving effect in the medium term.
