Dutch drivers face rising car insurance premiums amid higher repair costs and inflation
Automobile owners in the Netherlands can expect to pay more for their car insurance, according to David Knibbe, CEO of the major insurer NN Group. The increase in premiums is reportedly driven by rising damage claims and higher labor costs, trends that show no sign of reversing soon, according to De Telegraaf.
Knibbe explained Friday that inflation is now a constant factor affecting the insurance industry. As wages for repair workers and the prices of car parts climb, insurance premiums follow suit. "We will have to get used to living in a world where inflation is the norm," he told the newspaper.
Research from the comparison site Pricewise shows that car insurance premiums have already increased by over 15 percent this year, with all-risk policies rising even more steeply on average.
One significant cause of the higher costs is reportedly the growing number of electric vehicles on Dutch roads. These cars are heavier due to their batteries, leading to more severe damage in accidents. Modern cars also contain expensive electronics, pushing repair costs higher, Knibbe told De Telegraaf.
Additionally, mandatory third-party liability (WA) insurance premiums are rising after years of relatively low rates due to fierce competition. These policies cover damage to others' vehicles but have become more expensive as insurers aim to recover from earlier underpricing.
NN reportedly aims to raise premiums gradually rather than in large jumps. The company also said that it hopes to mitigate some cost increases through technological efficiency, including the use of artificial intelligence.
Knibbe made his remarks alongside NN’s half-year financial results, which showed a 6 percent rise in operational capital generation to over 1 billion euros. NN also announced an 8 percent increase in its interim dividend to 1.38 euros per share.
On another note, Knibbe addressed the backlog of nearly 30,000 pending WIA disability assessments at the Dutch Employee Insurance Agency (UWV). Insurers like NN are reportedly willing to help reduce wait times by involving their own medical and reintegration professionals, a strategy that has reportedly proven to cut waiting periods by 20 to 30 percent under UWV supervision.
