For insurance companies to compensate professionals who suffered operating losses during the coronavirus crisis, a lawyer is launching collective proceedings.

-

GILE MICHEL / SIPA

Bad news for individuals: Auto and home insurance contracts are expected to increase by 1.5 to 2%, on average, in 2021, according to a study by specialist firm Facts and Figures, which warns that the increase could be greater if insurers decided to offset certain additional costs linked to the pandemic.

Concerning automobile insurance, the context is “atypical” for all the players because of the “successive consequences”.

During confinement, automobile claims fell by 80% and health rules are causing "an increase in costs and repair times in car garages," said the study published Wednesday.

The increases most certainly contained

According to these experts, "the leeway of the profession to achieve rate increases is limited" in auto insurance between economic recession, decline in purchasing power and "degraded perception" of the sector due to its communication "in scattered order on the savings ”made thanks to confinement, details this study, which is a benchmark in the profession.

The increases could be even more contained as "some players (...) will probably decide to freeze their rates inherent to the savings in claims costs made during containment", anticipate the authors.

In April and May, three insurance companies - Maif, Matmut and GMF - announced trade measures in favor of their auto insurance underwriters, sparking the discontent of some of their rivals not aligned with these positions.

An increase due to natural disasters?

Each operator should "clearly explain what he has done with the exceptional technical profit recorded on his automobile insurance", the measures already taken with regard to his policyholders and "any decisions to pool this profit with the losses recorded. on other branches (such as operating losses), ”suggests Facts and Figures.

On the other hand, in multi-risk home insurance, the study does not find any effect of the pandemic or of containment, resulting in an “unlikely” rate freeze.

The cabinet also emphasizes a “drift in climate risk” that can influence prices.

Based on data from the Caisse centrale de réassurance, he notes that between 2010 and 2019, the average cost of natural disasters almost doubled, from 850 million euros per year over the period 2010-2015 to 1.6 billion euros annually between 2016 and 2019.

Economy

Insured or not?

True from false in the event of an accident on the way to school

Economy

Back to school is approaching, how to choose school insurance for your child?

  • Rate

  • Habitat

  • Coronavirus

  • Insurance

  • Automotive

  • Economy