After groceries, petrol and the like, insurance premiums are now also threatening to become more expensive. The background is high inflation. There may be exceptions for, for example, private health insurance.
Every insurance contract, be it a car or home insurance policy, usually has an “index clause”. This means that the premium can be increased on the main due date. With the low inflation rates of the past, you barely felt it, and some didn’t do it every year, according to Elisabeth Stadler, head of the Vienna Insurance Group (Wiener Städtische, Donau).
Especially rising next year
Inflation will now be felt more clearly, albeit with a delay. Depending on how the contract is built, inflation can initially only be increased by the inflation of the previous months, but there is a risk of a new impulse next year. Without indexation, there is a risk of underinsurance because the payment must meet expectations in the real economy, Stadler explains.
There may be exceptions for private health insurers. Because these affect a particularly large number of elderly people, according to Stadler, some providers have agreed to pass on only half of the price increase this time.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
