Insurance companies Munich Re, Swiss Re, Hannover Rück and Scor have recorded a drop in profits for the first half of 2022.
It’s not the best time for insurance companies. Inflation, natural disasters and rising interest rates directly affect the profits of the entire sector. This is mainly due to the cost of covering cases growing, while the financial return of the population declines. At the end of 2021 these companies’ total revenue has reached 3.6 billion euros. In the first half of 2022 it decreased to 1.9 billion.
Thierry Flamand, President of the Commissariat aux Assurances (CAA), notes that compared to last year, the cost of insurance compensation has increased by an average of 20%. This includes staff salaries, materials and transportation. All the while customers continue to pay the same rate. An unpleasant conclusion follows — it is likely that the cost of insurance will increase in the near future. The entire sector will try to make up for the losses at the expense of the customers’ wallet.