Why Fire Insurance Premiums Are Rising So Much

  • Post category:Economy News
  • Reading time:3 mins read

It is the sharp increase in reconstruction costs and the increase in the number of claims (mainly due to recurrent climatic disasters) that explain this increase. Insurers plead for better prevention.

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Reading time: 3 mins

IIt’s not just the cost of energy that has soared in recent months. Everywhere in Belgium, fire insurance premiums are increasing. In question: the proliferation of claims, but especially the sharp rise in the Abex index. The latter compiles the evolution of the cost of construction. Calculated twice a year – in November and May – by the Belgian Association of Experts (Abex), it takes into account the price of building materials and the cost of labour. However, with the pandemic, the war in Ukraine and supply problems, the cost of building materials has soared in recent months. Labor, on the other hand, is becoming increasingly scarce. Result: between July 2021 and July 2022, the Abex index rose from 878 to 954. An increase of 8.6%.

Increases in the interest of the insured

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