Home and auto insurance prices are expected to rise again next year, about as much as in 2023 or even a little more. The cause is the increase in claims and inflation. Although the sector committed a year ago to Bercy to moderate its prices, avoiding increasing them faster than inflation, this agreement will officially end in December. Will insurers be able to assume new commitments, as Bruno Le Maire recently asked in the columns of the specialized magazine L’Argus de l’assurance?
If price increases could be of the same order as in 2023, inflation should begin to decline, according to economists’ forecasts. The sector “pays for inflation and the effects of climate change”, declared Franck Le Vallois, general director of France Assureurs, specifying that the issue of price developments does not concern the federation but rather each company. However, none of the insurers interviewed wanted to comment on the issue at the moment, with the exception of Adrien Couret, CEO of the Aéma group, who indicated at the beginning of September that price increases could be expected that “will rotate.” around inflation.”
Significant decrease in the number of traffic accidents and favorable weather
Most insurers should reveal their prices before the end of the year. In car insurance, the comparator Assurland expects increases of between 3.5% and 4%, above the 2.5% to 3% observed in 2023. Predictions similar to those of the firm Facts & Figures, which expects +4%, after +2% to +3%, while the Addactis firm mentions an increase that could range between 4% and 5%.
In a study published on Monday, Facts & Figures underlines that “the significant decrease in the number of accidents in 2023, combined with a relatively favorable climate to date (limited number of phenomena such as hail, storms, floods) makes it possible to absorb part of the increase in both the price of spare parts and labor in workshops. According to the Automobile Repair and Safety Association, repair costs increased by 8.42% year-on-year in the second quarter.
Outre l’augmentation du prix des pièces, avec par example +13.1% en moyenne entre 2022 et 2023 pour un rétroviseur conducteur selon Facts & Figures, les garages ont avantage amoy de compétences en electromécaniciens que de simple mécaniciens, ce qui aourdit la bill. Regarding the use of second-hand parts, “it continues to progress but very slowly,” said Franck Le Vallois. In the first half of the year, 4.7% of replaced parts were “reused”, compared to 3.5% in 2022.
Remedy a difficult year 2022 in terms of housing
As for home insurance, the profession may seek to rebuild after a very difficult 2022 due to climate catastrophes that cost companies more than 10 billion euros. Above all, drought, which causes damage to houses built on clay soil, is increasingly costly. While the average bill was 250 million per year during the period 2011-2015, it increased to 1.2 billion between 2016 and 2022, with at least 3 billion for 2022 alone.
Although this year the score of insurers in terms of climate catastrophes should generally be less pronounced than in 2022, “we are on an upward trend,” recalls Franck Le Vallois. According to Cyrille Chartier-Kastler, in this context, insurers could increase their prices by 8%, but will probably be content with a 6% increase, after 3% to 5% in 2023. Assurland, for its part, expects +5 %, as in 2023 according to its estimate, and Addactis for its part mentions an increase of 6.5% to 7.5%.
Source: BFM TV
