The Austrian Financial Market Authority (FMA) has published a new instalment of its “Let’s talk about money” information series explaining when insurers may adjust premiums and what rights and choices policyholders have when premiums increase. The FMA explains that premium adjustments are generally set out in the insurance policy or the insurer’s general terms and conditions to preserve the value of coverage over time, often by reference to price indices (such as those published by Statistics Austria) or an agreed fixed percentage. Increases cannot be made arbitrarily and must be grounded in a clearly agreed, clear and comprehensible adjustment clause, with specific legally established rules applying for health insurance. For policyholders facing higher premiums, the FMA highlights options that may be available depending on the contract, including objecting, adapting the tariff or temporarily suspending coverage, while cautioning that switching insurers prematurely can have drawbacks such as higher premiums, new medical checks or the loss of ageing-related provisions.
Austria Financial Market Authority 2025-12-31
Austrian Financial Market Authority issues consumer guidance on insurance premium adjustments and policyholder rights
The Austrian Financial Market Authority (FMA) released guidance on when insurers can adjust premiums and the rights of policyholders in such cases. Premium adjustments must be based on clear clauses in the insurance policy or general terms, often linked to price indices or fixed percentages. The FMA advises policyholders on options like objecting or adapting tariffs but warns of potential drawbacks when switching insurers.