How much are we going to pay for our auto, home, life and health insurance next year? The question arises at a time of inflation and purchasing power concerns.
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It is at this time that insurers decide on future rates. The grad-mass of the sector is currently being held in Monaco. Since Saturday, and until Wednesday September 13, some 3,000 representatives of groups from around the world have gathered in the Principality to discuss rates and conditions under which reinsurers will insure insurers. Because that’s business: for an insurer to be able to compensate us for the damage we suffer, it must itself be insured beforehand! Hence the job of reinsurer.
The cost of damage on the rise
Natural disasters and climatic events are at the heart of the discussions, especially with the earthquake that has just hit Morocco. This tragedy is unfortunately only one sad example of a list of human and material disasters that grows longer each year. Knowing that, for Morocco, regardless of human losses, many houses were not designed to withstand an earthquake and were therefore difficult to insure against this risk. Not to mention the countries which, for economic, but also cultural reasons, do not use insurance.
>> Home insurance: why have prices increased?
In 2022, the overall bill for damage caused by natural events worldwide amounted to just over 120 billion euros. For the first half of 2023 alone, we are already at 100 billion euros in damage.
Risk prevention
For natural disasters, expected premium increases range from 7 to 20% next year. And even if we are not direct victims of these disasters, insurers include them in their overall rates. The figure that emerges from the various projections is an overall increase in insurance rates of 5% from 2024… which will not improve in 2025. Especially since several compensation criteria in the event of natural disasters could be reviewed at the rise as coverage for purely aesthetic damage to buildings in the event of drought.
In Monaco until Wednesday, insurers will also place a lot of emphasis on risk prevention, such as limiting the concreting of soils to combat flooding… a message sent to public authorities because it is they who establish the legislation in this area. matter.