(AOF) – Inflation, unstable economic situation and climate crisis will in 2023 lead to a significant increase in insurance premiums for professionals and companies. Coover consulted the available data and cross-referenced this data with data provided by 14 of its partners. It shows that insurance premiums will increase by 8% for professionals and businesses in 2023.
Here are the estimated average increases for 2023 in professional premiums by insurance product: Professional auto insurance (including fleet) +4%; Group insurance (mutual & provision) +4.5%; Professional Mutual +4.5%; Labor market pension +5%; Professional liability insurance +13%; Ten-year warranty +7%; Cyber and fraud insurance +10%; Liability insurance for managers +6%; Multi-risk insurance (including operating loss) +8%.
The examination of the figures shows that non-life insurance (professional liability, cyber, motor and professional multi-risk) is far more affected by the increases than personal insurance.
Non-life insurance is actually more sensitive to the economic context and climatic crises. The economic situation (and its impact on commodity prices) and the climate crisis weigh on the balance sheets of insurance companies, which compensate with price increases on these products.
In addition to 2022, the annus horribilis with 5.2 billion euros in claims registered for the period January-August compared to 3.5 billion euros per year on average since 2017, the report “Impact of climate change on insurance on the horizon 2050” is prepared by FFA predicts a doubling of the cost of these climate requirements by 2050 compared to the last 30 years.
Professional motor insurance is directly affected by the SRA index (spare parts index), which rose 8.3% this year and is directly reflected in premiums. The recent opening of the spare parts resale market does not yet appear to have the desired effect.
The Ministry of Economy and Finance has succeeded in getting French insurance companies to adopt an anti-inflation package. This agreement commits them to cap the increase in the average premium for auto and home insurance to below inflation in 2022 and 2023.