60% of policyholders in 2025 say the increased cost of living has made it difficult to afford insurance. Many are likely to adjust their policies or shop for better deals in search of savings.
Price comparison websites (PCWs) are popular when taking out insurance, with 41% of policyholders saying they would compare quotes on a PCW when getting a new policy. However, Gen Z and Millennial policyholders are less likely to rely on PCWs. Instead, they’d use alternative sources, including AI tools, reflecting a shift in how they shop for insurance.
Gen Zs and Millennials are increasingly adopting AI, relying on it for information searches and trusting its recommendations. Indeed, 22% of Gen Z and 17% of Millennial policyholders would use AI to research options when taking out a new policy, demonstrating its growth potential for insurance. PCWs and insurers must evolve by integrating AI-powered tools like chatbots and agents to simplify the insurance shopping and management process. However, caution is advised when incorporating AI into claims processes.
Although many policyholders still value brand reputation and trust, the use of AI in insurance shopping could reduce the significance of these factors. To remain visible in AI-driven searches, insurers must prioritise personalised content and quotes, and highlight tangible factors of brand reputation like customer reviews.
This report looks at the following areas:
- Types of insurance owned, including car insurance, home contents insurance and other types
- Switching activity at last renewal
- Claims activity and payout experience
- Actions taken in the last two years, such as reducing add-ons and cancelling an insurance policy
- Activities when taking out a new insurance policy, including the growing role of AI in insurance shopping
- Important factors when choosing an insurance policy, including fast claims processing, low premium and good reputation
Insurers and PCWs must find a balance in using AI to better serve the needs of Gen Z and Millennials while catering to the preferences of older generations.
Venkatesh Modi, Research Analyst, Germany
Market Definitions
The Report examines the insurance market in Germany.
Categories in the report include private liability insurance, car insurance, home contents insurance, legal protection insurance, accident insurance, life insurance, private health insurance, pet insurance, occupational disability insurance, and other types.
The ad spend data covers the following categories: motor insurance, motorcycle insurance, occupational disability insurance, cyber insurance, company insurance, private liability insurance, home contents insurance, legal protection insurance, pet insurance, accident insurance, water sports insurance, buildings insurance, other insurance, and pension plans.
Collapse All
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EXECUTIVE SUMMARY
- What you need to know
- Opportunities
- Outlook
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OPPORTUNITIES
- Support policyholders in tough financial times
- Many policyholders seek support from insurers
- Ways to support policyholders through financial challenges
- Integrate AI to meet changing needs
- AI is gaining momentum
- AI can simplify shopping and insurance management
- Take a cautious approach to AI in claims
- Prepare for a changing brand landscape
- Establishing and upholding a trustworthy brand reputation remains important
- Focus on personalisation and tangible indicators of brand reputation for future-proof branding
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CONSUMER
- Insurance ownership
- Insurance: a vital part of everyday life in Germany
- Graph 1: types of insurance owned, 2025
- Most Germans have at least three insurance policies
- Highlight bundling options to address Germans’ diverse insurance needs
- Lifestage dictates the types of insurance owned
- Graph 2: types of insurance owned, by generation, 2025
- Provinzial showcases how its insurance meets different consumers needs across lifestages
- Leverage parents’ desire to protect loved ones
- Graph 3: types of insurance owned, by any children, 2025
- Many Germans have pets, but few are insured
- Graph 4: dog/cat ownership, by age, 2025
- Graph 5: pet insurance ownership, by age, 2025
- Pet insurance shows growth potential, particularly among Gen Zs and Millennials
- Petolo highlights its pet insurance coverage
- Deliver more than standard pet health insurance
- Switching activity
- Car and pet insurance are the most switched categories
- Graph 6: type of insurance switched at last renewal, by type of insurance owned, 2025
- Switching behaviour differs across generations
- Graph 7: type of insurance switched at last renewal, by generation, 2025
- Gen Z and Millennial policyholders are more likely to switch providers
- Retaining Gen Z and Millennial policyholders is important
- Reduce the perceived risk to encourage policyholders with tighter finances to switch
- Men are more likely to make a claim and switch than women
- Claims activity and payout experience
- Claims process is crucial
- Graph 8: claims activity in the last two years, 2025
- Enhance the claims process to retain younger policyholders
- Graph 9: claims activity in the last two years (NET), by generation, 2025
- Claims outcome influences switching decisions
- Graph 10: policyholder who switched at last renewal, by claim outcome, 2025
- Actions taken in the last two years
- 31% of policyholders adjusted their policies in the last two years
- Simplify insurance management
- Younger policyholders are more likely to make changes to their policies
- Graph 11: actions taken in the last two years, by generation, 2025
- Help young policyholders navigate financial challenges
- Show genuine care for those facing financial difficulties
- Activities when taking out a new insurance policy
- Adopt AI while sustaining an omnichannel approach
- Price comparison websites continue to prove popular
- Graph 12: activities taking out a new insurance policy, 2025
- Price comparison websites commoditise insurance, but brand reputation remains important
- Highlight customer reviews and engage reviewers
- Gen Z and Millennial policyholders would rely on various sources when shopping for insurance
- Graph 13: activities when taking out a new insurance policy, by generaiton, 2025
- AI could become increasingly popular for insurance shopping among younger consumers
- PCWs: integrate AI to stay relevant
- Turn word-of-mouth referrals into a fun experience
- Leverage finfluencers to educate Gen Z and Millennials
- Create fun experiences on platforms like Snapchat and Twitch
- Important factors when choosing an insurance policy
- Policyholders prioritise peace of mind through faster claims and previous experience with the insurer
- Graph 14: important factors when choosing an insurance policy, 2025
- Speed up claims processing and establish a reputation for it
- Allianz frequently highlights its fast claims processing
- Emphasise the value of AI in speeding up claims while showcasing human support when necessary
- Prioritise personalisation and measurable indicators to maintain brand reputation
- Help consumers choose the right coverage
- DEVK dispels doubts and misconceptions about coverage
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ADVERTISING AND MARKETING ACTIVITY
- Advertising spend
- Decline in advertising spending since 2022
- Graph 15: total ad spend for the insurance category, 2022-25
- Ergo increases ad spend
- Graph 16: total ad spend of insurance category, by insurer, 2022-25
- TV remains an important channel
- Graph 17: ad spend of insurance category, by format, 2022-25
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MARKET
- Market drivers
- Insurance inflation exceeds overall inflation
- Graph 18: consumer price index, 2023-25
- Car insurance contributes significantly to rising insurance costs
- Graph 19: consumer price index for different insurances, 2023-25
- Consumers remain cautious
- Graph 20: financial consumer confidence, 2022-25
- Market size
- The insurance market grew in 2024
- Graph 21: gross written premium, 2020-24
- Market segmentation
- Rising car insurance premiums fuel the growth of damage and accident insurance
- Graph 22: gross written premiums, by insurance type, 2020-24
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APPENDIX
- Report scope and definitions
- Market definition
- Generations
- Abbreviations
- Methodology – consumer research
- Consumer research methodology
- A note on language
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