Thursday, March 21, 2013
Car Insurance : Price war of motor vehicle insurers
Prices for car insurance are increased slightly compared to the previous year. The hard winter 2010 as well as the disproportionate number of accidents were the decisive factor. But by no means a general trend towards increases in the insurance industry on the records. On the contrary, high competition in the industry and the merciless struggle for market share, the price level keeps constant low.
Every year are competing insurers especially to the automotive Wechselsaison to win the favor of customers. With affordable premiums, they want to shine at the beginning to do well as much new business. With words such as "we are the Aldi of the insurance industry", HUK-Coburg offensive enters the race. The Group has recently replaced the Alliance in the retail business of the Automotive Division as a market leader. The premiums an average 11 per cent have fallen industry for six years. That has pulled the rug from under the feet away some providers such as, for example, the Ineas, which went bankrupt this summer.
However, if you think that so is the price dispersion, which is wrong: hardly are costing the companies to undercut. Business with the automotive policy is profitable only if the main unit - the combined ratio – remains of the insurer under the 100-percent mark. It exceeds this value, cost of damage and management no longer has the premiums may be covered. Be sold also as in the past year many policies with discount protection, means for the customer in an accident while not upgraded and therefore no rise in premiums - who has insurance but additional costs to carry, that have been provided the policyholder account were originally.
Some insurers accept the fight at the damage limit of cost but in the short term, to lure many new customers with extremely competitive premiums. Because especially in motor insurance, customer loyalty is very strong: who once opted for an insurance provider, it remains faithful to typically long.
The insurance agents around the corner gives a discount on request of the customer partially or tries to thrash away the competition from the Internet through discounts on product bundling, but that goes for customers mostly at the expense of transparency. The HUK-Coburg that is however not the case: "our prices are non-negotiable. All customers with similar characteristics get in the applicable fare the same price", said Board Member Klaus-Jürgen Heitmann.
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