After years of loss
Motor vehicle insurers could return to profit zone in 2025
After years of losses, the German car insurers wave again for the first time in 2025. Many customers may have felt the reason for this.
In 2025, the German car insurers could write blacks again for the first time thanks to the clear premium increases after several loss years. The German Insurance Association GDV expects a contribution plan of 14 percent in the current year, as announced in Berlin on Thursday.
“The bottom line was that a damage-cost rate of 97 percent could be in 2025 and thus return to the insurance profit zone,” said GDV general manager Jörg Asmussen.
From 2021 to 2024, the income from the vehicle insurers had not been sufficient to cover the expenses for damage, administration and sales. According to the industry, the reason was the increased prices for spare parts and repairs. Because car manufacturers turned the price screw, the costs for car damage increased significantly more than general consumer prices. The combined damage-cost quota was clearly above the critical 100 percent mark. However, the strong competition initially kept the increases within limits.
dpa
Source: Stern
