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The fact that the insurance industry has been communicating for some time on the prices of some insurance policies is increasing and, today, Gjensidige's CEO, Helge Leiro Baastad, suggests that prices will go up. Carry on.
"We are preparing to deal with more unstable weather, floods, heavy rains, fires, and it is natural that we adjust our prices," said Baastad.
Gjensidige will pay the price, especially for housing and car insurance.
– The coincidences are in fashion this year. We are preparing for a more unstable future, this is the new signal we are sending today, says Gjensidige-toppen, and continues:
"We do not intend to say that the weather surprised us surprisingly in a few years.
Deep climate report
On October 8, the United Nations issued a major climate report that showed that we were heading for a world that would cause much more damage to insurance companies.
All indications are that the world is warming up, which means more floods, exhausted crops, melting ice and more extreme weather conditions.
An insurance company will sell your articles on Finn.no
Greenhouse gas emissions must be reduced by 40 to 50% by 2030 to limit global warming to 1.5 degrees.
"We are following these reports very closely," said Baastad, explaining that they will now examine how they design their insurance as a result of a new sustainable weather pattern.
Until now, extreme weather conditions accounted for only 550 to 630 million euros of additional insurance on the part of Gjensidige customers. The fourth quarter has already flooded, among others, the municipality of Skjåk, where 100 million people were injured in various insurance companies before the winter.
– 2018 goes into history as a very special year.
– Will be a bad year
The company itself and analysts agree that 2018 will be a weak year for the insurance industry.
"It will be a very bad year for Gjensidige, the first and fourth quarters are generally the weakest and we have already had a bad weather this fall," says analyst Jan Erik Gjerland in ABG Sundal Collier, who has achieved results disappointing.
He explains that the only reason why Gjensidige's shares are held is that the company promises to continue to pay strong dividends to its shareholders.
– They have a good balance and are usually a good company. According to Gjerland, the stock limit can be limited.
The stock closed at 1.60% on Thursday, after souncing sharply after falling 4.01% from the start.
In addition to extreme weather conditions, damage to the Norwegian fleet has increased more than in other countries. The reason is that Norwegians buy advanced cars with many new technologies, which is expensive to repair.
Gjensidige Forsikring closes branches and by-products
Price increases have already been announced in early 2018 and Norway's growth engine is also in the third quarter. The company announced a strategy focused on profitability rather than volume.
Gjensidige's pre-tax profit was NOK 964 million in the third quarter, compared with NOK 1.58 billion in the same period last year. It is also lower than the estimate of 1.08 billion estimated by analysts, according to SME / TDN Direct.
The result of the insurance amounted to 573 million NOK, against 1.15 billion NOK.
Premium income increased by 1%.
Will change the insurance policies for farmers
This only led to the claims of Gjensidige of NOK 80 million.
Baastad says that they will now review the terms of farmer insurance, as well as other insurance related to climate change.
– As an insurance company, we have to cover surprising and unexpected things. When the events are no longer surprising, they do not fall under normal non-life insurance.
Gjensidige-bossen is nevertheless aware that all customers affected by extreme weather conditions can be completely confident in the security of their values.
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