After years of losses: Motor insurers could return to profitability in 2025

Thanks to significant premium increases, German motor insurers could return to profitability for the first time in 2025 after several years of losses. The German Insurance Association (GDV) expects premiums in this sector to increase by 14 percent this year, as it announced in Berlin on Thursday.

"The bottom line is that this could result in a combined ratio of 97 percent in 2025, thus returning to the underwriting profit zone," said GDV Managing Director Jörg Asmussen.

Between 2021 and 2024, motor insurers' revenues were insufficient to cover expenses for claims, administration, and sales. According to industry sources, this was primarily due to increased prices for spare parts and repairs. Because automakers were tightening their prices, the costs of motor claims rose significantly faster than general consumer prices. As a result, the combined ratio was well above the critical 100 percent mark. To earn money again, motor insurers had also increased their customers' premiums in recent years. However, fierce competition initially kept these increases within limits.

© dpa-infocom, dpa:250710-930-780297/1