Auto, home, health… why all insurance premiums will jump in 2023

Professionals in the sector made no secret of it: auto, home and health insurance premiums will seriously increase in 2023. According to the consulting firm Facts & Figures, which unveiled its projections on September 14, premiums should jump from 3 to 5% for auto and health contracts and up to 8% for certain home contracts. More pessimistic estimates than those made last year by the same firm (3% maximum). All of these results are expressed in comparison with 2019, the last year before the onset of the health crisis which disrupted the insurance market.

Car Insurance

Despite a possible moderation in the number of kilometers traveled by the French (under the effect of the increase in the price of fuel and carpooling) and the rise in power of reused parts (reconditioned second-hand parts), insurers auto have to do a triple bind. First, the French fleet is changing, with the growing domination of expensive SUVs (for purchase and repair), which now represent 42% of new vehicle sales. If in addition to that their engine is hybrid or electric, as is the case of more than a third of new vehicles, accidents are much more expensive to support.

More generally, all vehicles are now more valued on the market thanks to on-board electronic components. And the labor needed to repair them is getting more and more expensive. “The hourly cost explodes as a result”, underlines Facts & Figures. Add to that the explosion in the price of spare parts (+7.7% for a left mirror, +8% for a front windshield) and you get an increase in contributions of between 3 and 5% for 2023. addition should be even more salty for SUV, hybrid or electric vehicles.

Home insurance (MRH)

It is indeed in home insurance that the increases should be the most pronounced. As France Assureurs had already announced, the main risk will be climatic: floods, storms and now repeated droughts. The latter deprive the land of water before the precipitation suddenly causes it to swell. Consequence: pavilions with too weak foundations crack. “With a trend towards an increase in the annual cost of climatic events of the order of 1 to 2 billion euros, the sector has no choice but to increase its prices to absorb them”, estimates Facts & Figures.

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To this structural factor may be added a cyclical factor: the price of building materials, like that of labour, is undergoing galloping inflation. The parts needed to manufacture housing logically follow the same path: wooden frames cost 11.7% more than in 2021. The same price spike for terracotta tile roofs. For these reasons, contract premiums should undergo an average increase of 3%, in addition to a fixed revaluation of 10 euros per year for climate risk. The riskiest properties, located in flood-prone or drought-prone areas, should even receive an additional increase of 3 to 5%.

Health insurance

Finally, in health, the aging of the population remains the main factor in the increase in premiums. Between 55 and 65 years, the premiums of the contracts are revalued by 2% each year, and even 3% from 75 years. Enough to allow insurers to absorb the growing consumption of care in the life of the insured. “This drift is now almost systematically taken into account by complementary companies in the pricing of their individual health contracts”, confirms Facts & Figures.

At the same time, health mutuals and insurers have had to assume an increase in their expenses with the full implementation of the 100% health reform. While the government was counting on a neutral reform for complementary insurance, the reality turned out to be quite different. Entry-level contracts had to be upgraded to allow policyholders to benefit from hearing, dental and optical care, without any additional charges. The expenses of these “low cost” contracts therefore jumped by 12% according to the consulting firm. Even before the application of age-related rate increases, the cost of health insurance is therefore expected to increase by 3% to 5% next year.

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