HUK24 CEO Admits: 'We Can't Avoid a Premium Increase' for 2024 Car Insurance
In an exclusive interview, Dr. Uwe Stuhldreier, CEO of HUK24—Germany's largest direct car insurer—confirmed what many drivers fear: car insurance premiums are set to rise significantly in 2024. Citing historic losses in the industry, rampant inflation, and the increasing impact of climate change, Stuhldreier stated plainly, "We can't avoid a premium increase next year." This interview delves into the reasons behind the rising costs of Kfz-Versicherung, HUK24's strategy in a tightening market, and what it means for you as a policyholder.
The Perfect Storm: Why Car Insurance is Getting More Expensive
Stuhldreier outlined three primary drivers forcing premiums upward across the entire German car insurance market:
- Skyrocketing Inflation & Repair Costs: "We feel the price increases in the average claims," Stuhldreier explained. The costs for spare parts, workshop repairs, and labor have surged, with parts prices rising about 10% in just 12 months—far exceeding general inflation.
- Historic Industry Losses: The CEO revealed that the car insurance sector is currently losing money, with reliable industry estimates pointing to total losses of around €3 billion this year. "With car insurance, you currently can't make any money," he stated, ruling out the long-term use of financial reserves to offset losses.
- Climate Change & Natural Disasters: Severe weather events are becoming more frequent and costly. Stuhldreier cited a recent hailstorm around Munich and Augsburg that caused unprecedented damage, including numerous total losses. "Climate change leads to higher damages and additionally drives up insurance costs," he warned.
The German Insurance Association (GDV) expects double-digit percentage increases in the market for 2024.
HUK24's Position: Navigating Price Hikes as a Direct Insurer
Despite the across-the-board increases, Stuhldreier is confident in HUK24's competitive edge due to its direct-to-consumer model.
- No Broker Commissions: "HUK24 completely forgoes broker commissions," Stuhldreier emphasized. This lower cost structure allows them to offer cheaper premiums than many competitors, even after passing on necessary cost increases.
- Targeting Price-Sensitive Customers: With household budgets tightening, Stuhldreier predicts a record number of customers will switch insurers this year. He believes HUK24 will be a "beneficiary" of this trend due to its inherent price advantage. "We are convinced that HUK24 will profit disproportionately in this market scenario," he said.
- Transparency is Key: The CEO stressed the importance of being transparent with customers about why prices are rising, while still maintaining an "extremely attractive offer" to win over clients from other companies.
Digital Focus & The Future: AI, Competition, and Growth
The interview also covered HUK24's vision for the future in a digital insurance landscape:
- Leveraging Artificial Intelligence (AI): HUK24 already uses an AI-powered chatbot for customer contact, which has helped avoid a "high six-figure number" of emails. Stuhldreier sees AI as crucial for further improving their digital service.
- Staying Off Comparison Portals: HUK24 maintains a firm policy of not paying for listings on portals like Check24. Stuhldreier compares this to the hotel industry, where guests are increasingly booking directly to get better offers. "Whoever takes out insurance directly gets a price-performance advantage," he argued.
- Demographics & Growth: With an average customer age of 45, HUK24's early digital adopters are now recommending the insurer to their children. Stuhldreier sees continued strong growth from the digitalization of the insurance market, where already one in four car policies is sold online.
- Watching the Competition: While acknowledging Check24 as a competitor, Stuhldreier downplays the threat from individual insurers. He also confirmed they are closely monitoring potential market entry by giants like Amazon but noted their strategy is not nationally focused.
Conclusion: A Challenging Year Ahead for German Drivers
The message from one of Germany's top insurance executives is clear: due to powerful economic and environmental forces, 2024 will be a year of higher car insurance premiums. For consumers, this underscores the importance of the annual November 30th cancellation deadline. As Stuhldreier himself anticipates a surge in customers switching providers, now is the time to compare quotes, understand the value of direct insurers like HUK24, and ensure you're not overpaying for your Kfz-Haftpflicht, Teilkasko, or Vollkasko coverage in the coming year.