Car insurance premiums in Norway have surged by nearly 40 percent since 2024, outpacing general inflation by a wide margin.
The Bottom Line
- Surging Profits: Finanstilsynet reports that earned premiums increased by 19% through 2025, while claim payouts rose by only 3%.
- Regulatory Scrutiny: The Norwegian Financial Supervisory Authority is monitoring pricing practices under section 7-5 of the Insurance Activity Act, which requires rates to bear a reasonable relation to risk and services rendered.
- Consumer Advice: Industry advocates advise policyholders to actively shop competitor rates.
Finanstilsynet Flags Disconnect Between Premiums and Claims
The widening gap between what motorists pay and what insurers pay out has drawn the attention of Norway’s financial regulator. Linn Therese Jørgensen, head of section for insurance companies and pension funds at Finanstilsynet, noted that profitability across non-life insurance firms has improved markedly.
As communicated in Finansielt utsyn, we observe that profitability in non-life insurance companies has improved significantly,
Jørgensen stated in an email to Nettavisen. She added that earned premiums grew by 19% through 2025, whereas claim payout increases stalled at 3%, driven primarily by higher prices charged to existing policyholders.
Tor Valdvik of KNA criticized the industry rationale for the hikes. Drivers have been told that insurance is getting more expensive because damages are more costly. More expensive repairs may be part of the explanation, but the figures show that premium income in motor insurance increased significantly more than claim costs in 2025,
Valdvik told Nettavisen. He added that the explanations provided by the industry thus far are inadequate and require clearer justification for customers.
Insurers Point to Complex EV Repairs and Currency Pressures
Major insurance providers defend the pricing trajectory by citing structural shifts in the vehicle fleet and broader macroeconomic headwinds. Bjarne Aani Rysstad, communications manager for property and casualty insurance at Gjensidige, acknowledged customer frustration but pointed to repair cost inflation.
Modern cars have become significantly more expensive to repair as a result of advanced driver assistance systems, sensors, cameras, battery technology, and more expensive spare parts,
Rysstad explained to Nettavisen. He also highlighted that a weaker Norwegian krone against the euro makes imported spare parts more costly, while domestic workshop wage growth exceeds the consumer price index.
Anna Kvardberg Ekre, press spokesperson at If, echoed those points, noting that the rising market share of heavier electric vehicles contributes to higher claim costs during accidents. Anette Grønby Rein, communications manager at Fremtind, emphasized that components previously fixable now require complete replacement alongside precision recalibration of onboard technology.
Consumer Advocates Urge Policyholders to Compare Competitor Rates
Industry stakeholders maintain that insurance operates on long-term horizons, creating a necessary lag between incurred costs and premium adjustments. Nina Lædre Wiig of industry association Finans Norge argued that pricing reflects expected future risk profiles rather than single-year accounting results.
However, consumer advocates remain skeptical of these long-term justifications. Valdvik urged motorists to request competing quotes based on identical mileage, deductibles, and coverage parameters.
