Hubig emphasized that a concrete proposal was now on the table for the first time in 25 years. “We want to discuss this proposal broadly and openly with everyone affected – especially with the states, with owners, tenants and with insurance companies.”
Insurer against obligation for elementary protection
Jörg Asmussen, General Manager of the General Association of the German Insurance Industry (GDV), welcomed the project in principle. “It is right to ensure that more buildings are insured against natural hazards.” At the same time, the insurance industry is against compulsory insurance. This alone does not prevent a single harm.
The current proposal falls short of expectations, Asmussen noted to t-online. “It is not enough to require more insurance coverage without at the same time introducing binding measures to avoid damage.” Without effective prevention, damage and insurance premiums would continue to rise. “It is particularly serious that the… Coalition agreement expressly promised state reinsurance is missing,” said Asmussen.
Among other things, insurers are advocating that construction should no longer be allowed in certain risk areas. Hubig and Klingbeil want to accommodate the insurance industry here: the federal government wants to examine how state prevention measures could be strengthened. It will also be examined whether further restrictions are needed on the designation of new building areas in flood areas.
Extreme weather threatens insurability
Overall, the insurance industry sees the insurability of real estate increasingly at risk due to the increasing probability of extreme weather events. Even though there were no serious extreme weather events in Germany last year, insurers recorded natural hazard losses amounting to 2.6 billion euros. Natural hazard insurance accounted for around 88,000 claims with a loss volume of 400 million euros.
In 2021, the year of the Ahr Valley flood, insurers paid 18.3 billion euros for natural hazard damage, 13.6 billion of which for natural hazard damage. Just recently, industry insiders made an appeal to European governments warning that many properties will soon no longer be insurable.
