Belgian insurers’ association reiterates desire for public-private partnership in face of flood losses

As the cost of insured flood damages exceeds the €2bn mark, Belgium’s insurance association has reissued a call for greater cooperation between the public sector authorities and the (re)insurance market. Insurers in Belgium have received more than 71,000 claims related to this summer’s floods, accounting for damages of more than €2.16bn. Commercial claims account for just 1,452 claims, while the vast majority are for homes (63,692) and vehicles (6,602), according to figures from the insurance association Assuralia. The damages are concentrated in three Belgian towns – Liège, Verviers and Trooz – where much of the property and vehicle damage is beyond salvage. This has prompted the CEO of Assuralia, Hein Lannoy, to call for a new approach to house construction in the region and a further example of public-private partnership. “In the future, we have to think about how we build, about the materials we use and about the places where we build,” said Lannoy. “Cooperation between the (re)insurance sector and the authorities must ensure that it remains affordable for individuals and companies to insure risks,” he added. Assuralia chairperson Hilde Vernaillen hailed the agreements forged between insurers and government in July to ensure that flood claims are met, citing the doubling of the insurance sector’s intervention ceiling and a €1bn interest-free loan to the Walloon region from the insurance sector, as provided for in insurance law. “The one-off agreement between our sector and the concerned authorities shows our common will to act quickly for the affected citizens,” she said. But she also called for the market to use the experience of the floods and the examples of cooperation as a template for addressing climate change. “We should also use this unprecedented situation as a beacon for the development, in collaboration with government, of a robust and sustainable legislative framework to address the impacts of climate change and the new risks it poses,” she said. “Insured persons need concrete protection. The sector can provide this and reaches out to the government to better map the risks within a public-private partnership and to look for appropriate solutions for this,” she added. However, Vernailen also expressed disappointment at the lack of consultation between lawmakers and the insurance industry on changes to law on fire insurance. The government has proposed that future policies will have to cover the damage that drought causes to property when soil dries out. “The voted interpretative law creates more questions than sustainable solutions, both for victims and for insurers,” argued Vernailen. Meanwhile, the Dutch Association of Insurers has reported that 50% of commercial claims related to the floods have been settled, along with 70% of private claims. The association also estimates the total value for insured damages to be between €160m and €250m. The association’s general manager Richard Weurding has also explained the delay in settling the remaining 50% of claims as a result of complex water damage, the influence of Covid-19 and shortages in the construction industry. “Understandably, victims want to return home as soon as possible or start their business again,” he said. “That takes a lot of time in some cases. The bad thing about major water damage is that the drying time takes months.”

Belgian insurers’ association reiterates desire for public-private partnership in face of flood losses

Want to read this article?

Read Next

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Want to read this article?

Read Next

Swedish risk managers told to focus on flexibility rather than resilience

European Parliament votes for ‘hard-fought compromise’ on CSDDD

Rates fall in most regions during Q1 but rise in Europe and US: Marsh

Major cyberattack would hike rates but insurers would ‘brush off’ losses: Lockton Re

Chubb says Q1 saw ‘best rates’ as it books $2bn profit

Related Articles