Increase in damage cost due to natural disasters - Increased severity of natural calamities amplifies the extent of destruction
Let's chat about last year's chaos in North Rhine-Westphalia, shall we? Extreme weather took a heavy toll, and guess what? It caused over half a billion euros in damages. The German Insurance Association (GDV) based in Berlin reported that insured damages resulting from natural hazards in 2024 totaled a staggering 613 million euros - a whopping 13% increase compared to the year before (544 million euros).
What caused the mayhem, you ask?
- Heavy rain or flooding: A staggering 171 million euros in property damages.
- Storms and hail: Insurers paid out 300 million euros to cover these damages.
- Motor vehicle damaged due to natural hazards: A hefty 142 million euros was shelled out by insurers for these claims.
Now, here's the problem: the actual damages are likely much higher since not everything is insured. Nationwide, GDV CEO Jörg Asmussen underscores the stark reality of climate change.
Debate on Mandatory Insurance
settlements across the nation total to a substantial 5.7 billion euros, which, in the long run, isn't surprising. "The numbers don't lie: climate change adaptation needs to be a top priority for our new government," says Asmussen. So, what's the solution? Mandatory insurance for residential buildings, according to him, might not entirely prevent damages, but it's a significant step towards securing the safety of people and infrastructure.
"Only a holistic natural hazard strategy can offer long-term security," says the boss of GDV.
In a nod to this direction, mandatory insurance for residential buildings is in the works. Federal Minister of Justice, Stefanie Hubig (SPD), has hinted at its introduction, even within the current legislative period. "Climate change is on the prowl, and without better insurance coverage, we won't make it," she warned.
- Climate Change Adaptation
- Natural Hazard
- Insurance Coverage
- North Rhine-Westphalia
- Weather Extremes
- German Insurance Association
- Damage Claims
- Floods
- Force
- Jörg Asmussen
- German Insurance Association
It's worth noting that around half of German households aren't insured against natural hazards like floods and heavy rain, highlighting a significant gap in coverage[1][2][3]. The move towards mandatory insurance reflects a growing awareness of the importance of protecting against natural hazards in Germany.
References:
[1] "The slow-motion horror of climate change in Germany." DW.COM. 21 September 2021. https://www.dw.com/en/the-slow-motion-horror-of-climate-change-in-germany/a-60806538
[2] "Why are flooded German cities so ill-prepared?" DW.COM. 28 September 2021. https://www.dw.com/en/why-are-flooded-german-cities-so-ill-prepared/a-60819418
[3] "Mandatory flood insurance is coming to Germany. Will it be enough?" Business Insider. 27 September 2021. https://www.businessinsider.de/mandatory-insurance-floods-germany-coverage-climate-change-2021-9/?utm_source=yahoo
- In light of the substantial damage claims resulting from last year's extreme weather events in North Rhine-Westphalia, there's an increasing call for climate change adaptation, particularly in the form of improved insurance coverage.
- With around half of German households uninsured against natural hazards like floods and heavy rain, mandatory insurance for residential buildings is being considered as a significant step towards securing the safety of people and infrastructure in the face of climate change.
- The German Insurance Association (GDV) CEO, Jörg Asmussen, suggests that only a holistic natural hazard strategy can offer long-term security, and this strategy might include mandatory insurance for residential buildings as a key component.
