Car Insurance in Germany

Motor insurance customers in Germany are becoming increasingly sensitive to prices and other services offered by the insurance companies according to a new survey from GfK.

Although increasingly, customers are keeping an eye on the cost of motor insurance, in the longer term, there is growing dissatisfaction with the prices. In addition, other aspects relating to motor insurance, such as service, advice and information, are also becoming more important. One in two of those insured surveyed by GfK had based the decision on which insurance to choose on a competitive comparison of the cheapest premiums or rates. Recommendations from friends or associates were taken up by one in seven of those surveyed and one in nine gave advice and service as the decisive factors for taking out a particular policy.

According to Christina Schildbach of GfK, "The times when one in every five motor insurance buyers based the decision on which insurance policy to buy purely on the fact that he or she knew the insurance agent personally are gone, although this was still the case as late as 1998. Today's motor insurance buyers are increasingly asking for more information and market transparency and at the same time, they are actively trying to maximize their resources and this also affects motor insurance."

This is bound to impact on customer loyalty. Instead of remaining with the same insurance company for many years, motor insurance buyers are increasingly becoming price-driven financial "price floozies" on the look out for better and better prices. Virtually one in two of those surveyed believes premiums are too high: one in ten is currently planning on changing insurance companies and with almost all respondents, i.e. nine out of ten, the cost of the premium is decisive.

Today, half of all insurance customers still prefer to take out their motor insurance through an insurance agent or broker. Direct sales are doing less well than previously, with only one in five of those surveyed choosing this method of buying insurance. This is in contrast with 1997, when the figure was still one in four. In addition, the Internet is gaining in popularity as a sales channel, and almost one in five people now prefer to buy motor insurance online. In 1999, this figure was still just one in thirteen.

Aspects regarded as decisive factors include, above all, factors which the insurance companies themselves are able to regulate, such as price, service and advice. This means that in future, taking on a focused customer-led profile will enable insurance companies to gain a competitive advantage.

These findings and a range of other statistics have been taken from the Trends and Facts in the Motor Insurance Market survey of 1,000 insured parties in summer 2001.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

• GfK Germany
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