The climate emergency, coronavirus pandemic and now war: the current situation in Europe is responsible for immense suffering. Countless people have lost their possessions, their health, their home or even their lives.
Even those who are not affected directly are feeling the indirect economic consequences: goods are often scarce and are becoming increasingly expensive. This trend is set to intensify, chiefly due to bottlenecks in global supply chains due to the coronavirus pandemic, as well as rising energy and producer prices caused by the war in Ukraine. Whether for a private consumer going to the supermarket, a manufacturer buying commodities or a builder purchasing materials: prices are going up. In April 2022, producer prices were up by some 34 per cent on the previous year. Inflation is now also increasingly becoming a challenge in the insurance sector.
‘Settling a claim for property damage – e.g. in the event of a factory burning down – now costs considerably more than it did a year ago, as the reconstruction/replacement costs have risen,’ explains Nadine Benkel, Market Management Team Leader at Funk. ‘This effect is chiefly noticeable in the property insurance, transport insurance and technical insurance segments.’ Along with industry, the property sector is also heavily affected – and premiums may increase further here in the medium term.