Increase. Inflation will weigh on insurance premiums.

Inflation, which has accelerated sharply in recent months in Switzerland, will also weigh on insurance premiums, warned the managing director (CEO) of the insurer Helvetia, Philipp Gmür.

According to Philipp Gmür inflation will weigh on insurance premiums.

KEYSTONE

Rising prices for products used in repairs or replacements drive up insurance costs. The Saint-Gallois group thus sees its bill inflated when a mechanic raises its prices because of the increase in the cost of paint or when the prices of windows that need to be extended after a storm increase.

“We have been monitoring inflation for some time now,” Gmür said in an interview with AWP. “Thanks to the indexation clauses, the premiums are quickly adjusted according to the evolution of the index, and we also use the premium adjustment clauses”, he added.

So far, Helvetia has not coped with the big catastrophe and, as a result, inflation has not yet been noticed too much, according to the boss.

Apart from the increase in prices, the general macroeconomic evolution and the problems in the international supply chains worry the leader. “Sales of new vehicles are down due to (delivery) delays, so demand for motor vehicle insurance is likely to drop in the second half of the year,” said Philipp Gmür.

This situation is also likely to have a negative impact on pension solutions, as customers have less money available for this type of product. But generally speaking, the demand without this domain increased.

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