Contained increases on insurance contracts in 2023 against an explosion in 2024?

According to the company Assurland, increases in housing and home insurance contracts will be contained between 2.5 and 5% in 2023. A contained increase before a possible backlash in 2024.

The government, which is trying by all means to preserve purchasing power, has put pressure on insurers to limit increases in car and home insurance prices for 2023, asking them to limit the increase to below the limit. According to the insurance broker Assurland, the increases in 2023 will on average include between 2.5 and 5% increase on car insurance and between 3 and 5% increase on home insurance. Figures below inflation due to government pressure, but also due to fierce competition between insurance companies themselves, forced to limit increases if they want to keep their customers.

Global warming and inflation in question

The cold shower won’t happen until 2023. On the other hand, the consulting firm Fact&Figures predicts much larger increases in 2024, with at least a 6 to 8% increase. At that point, insurance companies will have no choice but to raise insurance rates. Firstly, because there are now more and more demands due to global warming. Think of all that we have experienced in France again this year between frost, floods, hailstorms, drought. These climatic disasters have damaged many houses, many cars, and in the future the situation is likely to get worse.

In addition, between Covid and the war in Ukraine, the price of new and used cars has increased, is more expensive to insure, and the price of spare parts for repairs has also increased. The price of a rearview mirror, for example, has increased by 6% between 2021 and 2022. All of this will be passed on by the insurance company to car insurance rates.

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For property insurance, the cost of repairs in the event of material damage to a house has also increased. With the increase in the price of materials, but also the lack of labor, repairs are more expensive. The insurance company will also pass it on to the insured. Thus, according to the consulting firm, the insurance companies will turn their backs in 2023 and grind on the brakes under pressure from the government. Which could be very expensive in 2024.

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