The German Insurance Association (GDV) has downgraded its forecast for the industry for 2022 in the wake of the war in Ukraine.
The GDV now expects annual premium income to grow 2.3% this year, down from previous expectations of 2.7%, it told Reuters on Thursday.
“The direct effect on German insurance companies due to the war and sanctions is relatively limited,” GDV chief executive Joerg Asmussen said in an interview. “But we are affected indirectly by second-round effects. These include greater uncertainty, higher inflation and lower growth prospects. As a result of this we have downgraded our forecast.”
It also downgraded its forecast for life insurance premiums to 0.7% growth from 1.6% earlier this year.