Forecast: Claims Ratio of Motor Vehicle Full Own Damage Insurance in Germany

The claims ratio for motor vehicle full own damage insurance in Germany is projected to steadily decline from 81.2% in 2024 to 78.8% in 2028. In 2023, the claims ratio stood at 82%, indicating a downward trend in claims relative to premiums, suggesting improved risk management and potentially lower claim costs over time.

Year-on-year, the claims ratio decreases as follows: 0.7% from 2024 to 2025, 0.7% from 2025 to 2026, 0.8% from 2026 to 2027, and 0.8% from 2027 to 2028. The compound annual growth rate (CAGR) exhibits an average annual decrease of approximately 0.75% over this five-year period.

Future trends to watch for include advancements in vehicle safety technology and the integration of AI in claims processing, which could further reduce the claims ratio. Additionally, market dynamics such as changes in consumer behavior and regulatory developments could impact insurance claims and pricing strategies.