In an environment of 5.6% inflation, Sjóvá has decided not to increase the price of household vehicle insurance by more than 2.5% over the next 12 months. This is in line with the Central Bank of Iceland’s inflation target, with the aim of helping to reduce inflation and promote greater stability.
Vehicle insurance accounts for, on average, well over half of households’ insurance costs, so this measure applies to a significant proportion of household insurance expenditure. With this initiative, we want to do our part to bring inflation down, protect households’ purchasing power and promote greater stability.
“We all need to work together on this,” says Hermann Björnsson, CEO of Sjóvá. “By limiting increases to 2.5% over the next 12 months, Sjóvá is demonstrating through clear and tangible action that we are genuinely doing our part to help reduce inflation and promote economic stability.”
The measure to limit index-linked increases in premiums to 2.5% applies to vehicle insurance for household vehicles held by customers in the individual market over the next 12 months.
Claims will continue to be compensated in line with price developments and the terms of insurance contracts. Sjóvá also calls on its customers and suppliers to do their part in this shared effort, which affects society as a whole.
