The Reasons Behind Rising Prices

Why Are IDA Forsikring Prices Increasing?

IDA Forsikring is a member benefit designed exclusively for IDA members and is not intended to generate a profit. Since 2010, we have not increased our prices; we have reduced them during periods of surplus. Most recently, in 2021, we lowered our building and car insurance prices by 15% and 20%, respectively.

In 2023, we supported more IDA Forsikring members than ever before and made larger claims payments. To maintain our high standard of coverage and provide optimal protection against unexpected events, the Board of Directors of IDA Forsikring has decided to increase insurance costs.

Several factors have contributed to the rise in claims payments over the years. High inflation and increasing energy prices have raised the costs associated with compensating claims. This trend has led to higher prices for craftsmen, various professional services, spare parts, and medical treatments in Denmark and abroad, including services from dentists and veterinarians.

Moreover, excessive rainfall in 2023 resulted in a record-breaking wet year. In the future, more frequent and severe weather conditions will lead to significant compensation for resulting damages. Therefore, the IDA Forsikring Board of Directors believes it is their responsibility to act prudently and has decided to raise prices this year.

This decision aligns with a broader trend in the insurance industry, where many companies have already increased their prices or announced future increases due to rising risks associated with weather-related damages.

Which Insurance Policies Are Increasing in Price?

Not all of our insurance policies have seen price increases. The policies that have been affected include car insurance, home contents insurance, travel insurance, and health coverage for cats and dogs. These have all experienced the highest damage costs.

Additional Written Notices

You may receive another written notice based on your insurance renewal date if you hold multiple affected insurance policies. We send the notice to the policyholder one and a half months before the renewal date, which is the due date for payment.

Can I Reduce the Cost of My Insurance Policy?

We recommend reviewing your insurance coverage at least once a year, as your needs and circumstances can change frequently. For example, you may no longer have children living at home, or you might have increased the coverage on your home contents insurance for the property you no longer own or that has decreased in value. Such changes can affect the price you pay for your insurance. Other factors may have also impacted your insurance conditions, allowing you to save money.

Your insurance policies are outlined on My Page, where you can review your selected coverage, insurance contracts, and associated conditions.

Currently, you cannot change your insurance policies through My Page. To make any modifications, please get in touch with us at 70 21 01 91 or in writing via our contact form at IDA Forsikring.

If you have not yet bundled all your insurance policies with IDA Forsikring, consider becoming an IDA Gold member. As a Gold member, you will receive a 15% discount on all your insurance policies. Visit our website to learn more about the requirements for IDA Gold membership.

Where can I find my insurance contract and insurance conditions?

You can find your insurance contracts and conditions on "My Page." On "My Page," you can:

• View your policy or insurance contract along with the associated conditions.
• Access your personal and contact information.
• File claims on your insurance or make use of your coverage.
• Find your bills.
• Grant your spouse or cohabitant power of attorney to view and edit your insurance policies on "My Page."

If you encounter any issues logging into "My Page," you can find more information here. You can access all our insurance conditions here if you know the code for your insurance terms and conditions.

Why is my insurance premium lower on My Page?

The insurance premium listed on "My Page" does not include additional fees. Read here to learn more about these fees.

Your insurance premium is adjusted annually based on the net wage index for the private sector, as reported by Statistics Denmark. In 2024, we will increase our prices by 3.2%.

This adjustment takes effect on January 1 each year, when your premium, insurance sums, and deductibles are updated upon renewal. This update is essential to keep pace with changes in the prices of goods, services, and other commodities in society, ensuring that the value of your assets remains appropriately balanced over time.

Can I cancel my insurance?  

You can find instructions for cancelling your insurance here.  

If we have announced a price increase for your insurance, you can terminate your policy without incurring any fees. You may also cancel your insurance before the renewal date by contacting us.  

The general termination rules apply to any other insurance policies you wish to terminate.

Will the price hikes impact all members of IDA Forsikring?

The price increases will affect all members holding the impacted insurance products. We have conducted a thorough analysis to determine which insurance products show the most significant discrepancies between income and expenses.

As a result, some insurance products will see more significant price increases than others, while some may not be changed at all. Additionally, some members may not be affected by the price increases. These price adjustments are based on the risks and claim histories associated with each insurance product and member. Our goal is to ensure that the burden of these price increases is distributed fairly and equitably among all members.

Why am I being charged more when I only had one claim this year?

We appreciate your support in keeping prices low. However, injuries and accidents can happen unexpectedly and affect anyone. Insurance operates on the principle of sharing risk, so when overall claims costs increase, that risk must be distributed among all policyholders. As a result, we need to raise our dog insurance prices to maintain the same level of coverage for all members.

Why do you raise your prices when Tryg makes a significant profit?

IDA Forsikring is known for its strong financial position, meaning members' claims are covered by the premiums paid by IDA Forsikring's members. As a result, our prices are generally lower than those of other insurance companies because our members tend to take better care of their belongings. This financial stability allows us to continue providing you with the best coverage.

It is important to note that IDA Forsikring's pricing decisions are independent of Tryg, another insurance company. Our Board of Directors determines our prices based on IDA Forsikring's financial performance, not Tryg's situation. Although Tryg recently raised its prices and made large profits, IDA Forsikring has not increased its prices.

However, we must respond to rising costs to maintain our healthy financial position. In 2023, we experienced significant damage costs, yet we did not raise our prices, which resulted in monetary losses. As these higher costs are expected to persist, we must increase prices to ensure continued economic stability.

Can you guarantee that there will be no price increase within the next year?

We cannot guarantee that prices will remain unchanged indefinitely. While we have kept our prices the same since 2010, we plan to increase them in 2024. Our goal is to minimise further price increases in the future.

We understand that the current economic situation has impacted our operations. However, we cannot predict future changes in inflation or unforeseen weather events, so we cannot promise that prices will not rise again.

If IDA Forsikring generates profits in the future, we may consider reducing prices on some of our insurance policies. We hope this information is helpful.

Why is the cost of my car insurance increasing?  

Car insurance premiums are set to rise in 2024 due to the increasing inflation observed in recent years. The higher costs of workshop repairs and spare parts have contributed to this increase. Additionally, there has been a surge in car insurance claims attributed to the growing number of cars on the roads and increased distance travelled, which raises the risk of accidents.

Furthermore, weather-related damage has significantly contributed to the increase in car insurance claims. It's important to note that hybrid and electric vehicles are generally more expensive to repair, costing up to 30% more than their petrol or diesel counterparts.

Why is the cost of my home contents insurance increasing?  

Home contents insurance is becoming more expensive primarily due to inflation and pressures on global supply chains. These factors have driven up the cost of replacing lost or damaged items.

Additionally, changing weather patterns have increased expenses related to incidents like cloudbursts, resulting in more frequent damage to home contents.

Why has the cost of my travel insurance increased?  

Travel insurance has seen a more significant price increase than other types of insurance, primarily due to high inflation affecting treatment costs in many countries over the past three to four years. The costs of doctor visits, repatriation, and other services have increased more than the standard wage index.

Moreover, trip cancellations, particularly during the COVID-19 lockdowns, have raised the prices of airline tickets and hotel accommodations, further driving up travel insurance costs.

Why is the premium for my dog insurance increasing?  

Dog insurance premiums have risen significantly in recent years, mainly due to the increasing costs of veterinary services and the need for medical care.

However, if you only have statutory liability insurance, these price increases will not affect your dog insurance premiums. Therefore, opting for only the necessary coverages and maintaining liability insurance can help reduce the cost of your dog insurance.

Why is the premium for my cat insurance increasing?  

The prices of cat insurance have increased due to rising costs associated with veterinary services and medications.