Next price shock – this time in the insurance sector: Huge price hike for repairs leads to higher premiums.
The price increase does not stop at the insurance sector either: “The increase in repair costs, for example due to more expensive construction materials and raw material shortages, is also reflected in insurance premiums,” confirms Doris Wendler, CEO of Wiener Städtische. Most contracts provide for annual adjustments based on the various Statistics Austria indices.
Construction cost index hits commercial and industrial insurance
“We need to compensate for these increases through the premium so that repairs are guaranteed. We cannot fully reimburse the damage without appropriate adjustment. The policyholders would then be underinsured.” The construction cost index in particular has been hit hard by increases. That was 20 percent more in February than in the same period last year. “It affects commercial and industrial insurance enormously.” But also home insurance, which is mainly based on the consumer price index.
The increase takes effect on the relevant main due date of the premium. Many policyholders have already received a hefty bill: “We have not noticed any change in customer behavior as a result,” says Wendler, who adds: “We will do everything we can to ensure that insurance remains affordable.”
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.
