BERLIN (dpa-AFX) - After several years of losses, German car insurers returned to profitability in 2025. As providers increased their premiums and severe storms or other natural disasters failed to materialize, only 96% of premium income was spent on claims, administration, and sales, according to the German Insurance Association (GDV) on Wednesday in Berlin.
In the previous year, the ratio had stood at a clearly negative 104%, and in 2023 it was even above 111%. As a result, car insurers posted losses amounting to billions. The car insurance market is fiercely competitive, as for many providers these contracts are pivotal in selling customers additional insurance policies.
However, the sector has been struggling with significant cost increases for years. "Since 2015, replacement part prices have risen by more than 80%," complains the GDV. By contrast, general consumer prices have increased by only about 30%. Due to ever more expensive claims, car insurers have recently raised premiums significantly: In 2025, premium income in the sector rose by 13.4% to €38.6 billion, according to the GDV.
Despite returning to profit after years of losses, the GDV leadership warns this is no reason for complacency: Climate-related damages from extreme weather events are expected to have an increasing impact on loss figures.
Overall, the German insurance industry was also able to significantly increase its revenues in 2025. Across all business lines, premium income grew by 6.6% to €254 billion. While property and casualty insurance rose by 7.7% and private health insurance by 7.3%, the increase in life insurance was only 5.1%.
For the current year, the association expects an overall premium increase of 4.7%. Revenues in private health insurance are expected to rise particularly sharply: here, the association anticipates an increase of 10.5%. In property and casualty insurance, it expects growth of 5.2%, and in life insurance only 1.1%./stw/err/mis
