Legal protection insurance under pressure: rising costs for everyone!
Legal protection insurance under pressure: rising costs for everyone!
From June 1, 2025, changes in cost and remuneration law are imminent in Germany, which not only affect the lawyers' fees, but will also increase the court costs significantly. These developments are already triggering concern, because the Cash-online Legal protection insurers expect an annual additional burden of around 250 million euros. Experts raise the alarm, because providers of legal expenses insurance fear that the higher costs for consumers could pose a hurdle in order to assert themselves legally.
In recent years there have been several increases in fees, as the cost of cost law of 2021 shows. Almost 60 percent of households in Germany have legal protection insurance, but for around 40 percent of the population without this protection, it becomes increasingly difficult to bear the increased legal and court costs. Anja Käfer-Rohrbach is particularly concerned about the overall association of the German Insurance Industry (GDV), which points out that rising prices could endanger access to law.
The new challenges for legal protection insurers
Another illuminating picture of the location draws the data of the GDV. In 2024, around 27.3 million legal protection insurance contracts were concluded in Germany, and over 4.8 million cases were supported with an entire expenditure amount of around 3.8 billion euros. Remarkably, over 80 percent of this sum is eliminated by lawyers' fees. Jörg Asmussen, General Manager of the GDV, emphasizes that many people without legal protection insurance are facing an insurmountable financial hurdle if they want to legally assert their claims.
The digital change and its effects
In this changing landscape, digital progress is often addressed. The insurance industry calls for a revision of fee law that should be adapted to modern working methods - especially in an age in which digitization and artificial intelligence revolutionize legal practice. Mass procedures that occurred in the diesel scandal could be more cost-effective and efficient due to industrial processing.
The current plans for fee adjustment provide for an increase of up to nine percent. This could make access to the judiciary more difficult for many people. The company faces the challenge of making the legal system fair and comprehensible for both consumers and legal protection insurers, and politics sees itself as responsibility to find solutions here.
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| Ort | Rohrbach, Deutschland |
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