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Drivers in Germany face higher insurance premiums – industry executive

Drivers in Germany face higher insurance premiums – industry executive

MUNICH (Reuters) – German drivers should prepare for higher car insurance premiums next year after three years of falling prices, an auto industry executive told Reuters.

High insurance rates are the latest headache for drivers, who already have to put up with high fuel costs, a shortage of parts, and long waiting times for new cars. Germany’s annual inflation rate reached 10.9% in September, the fastest pace in more than a quarter century.

Price increases can be expected early in the year, said Klaus-Juergen Heitmann, CEO of HUK-Coburg, the German market leader in car insurance.

“Some insurance companies have already announced increases,” he said.

“Whether the projected jump in revenue (in 2023) is enough to avoid falling into the red remains to be seen,” he added.

Rising repair costs make it difficult for auto insurers to be profitable, and Heitmann predicted that HUK-Coburg auto insurance’s operating profit in 2022 would be around zero.

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