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why insurance prices will increase again in 2024

The trend already appeared at the beginning of September with the meeting of reinsurers in Monaco. This time it is the general public insurers who are starting to prepare the ground. The first figures circulating are all pointing upwards.


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A car insurance contract (illustrative photo), November 22, 2016 (JEAN-FRAN?OIS FREY / MAXPPP)

Prices increase every year but this time, for 2024, the bill may be a little higher. According to the specialist firm Facts & Figures, we could see a doubling of prices on certain services. Home insurance and mutual health insurance should be particularly affected: +8%. As for automobiles, we should see an increase of around 4%.

The weight of inflation

This prospect of an increase can be explained firstly by inflation. Tensions on raw materials to put cars back together after an accident weigh on the bills to be reimbursed. Not to mention the larger volumes of SUVs to insure, vehicles that are more expensive to repair than traditional, lighter models. That is to say, the number of car accidents is decreasing but repair costs are increasing.

There is also the increase in natural disasters, the increase in the price of medicines (+7% over one year) and the increases in medical consultations to take into account. So many sums which are added to the volumes to be reimbursed by mutual insurance companies. Here is the composition of the cocktail for 2024.

Last year, major insurance groups committed to keeping the rise in premiums paid by customers below the level of inflation. But since then certain events have been added, such as the damage linked to violence in the suburbs. The bill for the riots, after the death of young Nahel in Nanterre at the end of June during a road check, amounts to 650 million euros for insurers, double the forecast.

Political pressures

In the current economic context, Prime Minister Élisabeth Borne calls on insurers to exercise moderation. Are they going to play the game? There is a far gap between the wishes of politicians and the financial realities faced by insurance companies and reinsurers who themselves insure upstream insurers. A cascade of costs to be reimbursed by professionals. Faced with the multiplication of risks and events to be insured, it is not certain that the wishes of the government will be fully heard.


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