German Insurance Premiums Set to Rise 1.5% This Year, GDV Says
Premiums are expected to rise to 180.7 billion euros ($230 billion) this year, helped by the strongest property and casualty growth since 1994, the Berlin-based GDV, which represents 474 insurers in Germany, said in a statement today.
This is a “satisfying year” for German insurers, given the challenges from the European debt crisis, said GDV President Rolf-Peter Hoenen. While low interest rates are weighing on investments, life insurers are expected to achieve a return of about 4 percent this year, compared with an average policyholder guarantee of 3.2 percent for existing policies, GDV said.
“Concerns, that life insurers won’t be able to fulfill their guarantees in the short- and mid-term are therefore unfounded,” Hoenen said. “However, it’s undisputed that the low interest rate environment is a serious challenge for German insurers.”
Property and casualty insurance premiums are expected to advance 3.7 percent to 58.7 billion euros this year, the association said, helped by a projected 5.1 percent increase in motor insurance to 22 billion euros. Life premiums are expected to fall 0.7 percent to 86.2 billion euros, while private health- insurance premiums may rise 3.4 percent to 35.8 billion euros, GDV said.
To contact the reporter on this story: Oliver Suess in Munich at email@example.com