Dutch and German insurers unite to face flood risk

The Dutch insurance association (VVV) is working with its German equivalent (GDV) in key areas of mutual concern such as how to cope with the rising flood risk across Europe and the impending revision of Solvency II, the European capital adequacy and reporting standard. The two associations agree with their corporate risk management customers, represented by NARIM in the Netherlands and GVNW in Germany, that a more coordinated approach with government involvement is needed, in particular to rise to the threat of natural catastrophes. The theme of the recent meeting between the two associations in Berlin – ‘Flooding does not stop at the border’ – referred to the fact that the catastrophic floods of the summer of 2021 hit the Netherlands just as hard as Germany. “That’s why collaboration and learning from each other is so important. Because not only Limburg was hit hard during the floods in July 2021. In Germany, too, the consequences were disastrous, even with fatalities,” said the VVV. “By looking beyond your own national borders, you can come to an approach in which you can strengthen each other,” said Geeke Feiter, director of damage at the VVV, after the visit to the German capital. In addition to differences in how damage from weather extremes is handled, Feiter also saw three important similarities. “The differences are obviously in the size and geography of Germany and the way the insurance market and the government are designed,” she said. But Feiter added: “German insurers are also confronted with increasingly extreme and prolonged rainfall, which means that flooding will occur more often. And… we share the same ambition to work with the government on a solution in the form of an effective compensation scheme for affected residents.” The GDV also recognises that this can only be achieved from a broad, comprehensive approach. Feiter explained: “An approach that not only focuses on concrete preventive measures that you can take in the run-up to, for example, a storm or a lot of precipitation. But also by already thinking carefully about how we organise our country and by building in a climate-adaptive way in order to prevent and limit damage. And, last but not least, to provide effective help and support, during and after the settlement of the damage caused by weather extremes.” Jörg Asmussen, CEO of the GDV, and Richard Weurding of the VVV agreed that partnership is needed across other areas too, not least on Solvency II. Asmussen pointed out that cooperation surrounding the revision of Solvency II is very intensive and constructive, certainly with regard to the developments regarding the prudential treatment of mortgages under the standard. German insurers, like the Dutch insurers, have many long-term liabilities on their balance sheets and so the revision could have a significant economic impact on their financial position. The visit to Berlin was also used to meet the Dutch ambassador to Germany. The Netherlands has many economic interests in Germany and there is cooperation in several areas already. “The Netherlands is closely following the developments of the German energy transition, partly in view of the risks that the transition entails. In addition, the embassy brings Dutch companies and investors, such as insurers, into contact with the German government,” said the VVV.

Dutch and German insurers unite to face flood risk

Want to read this article?

Read Next

IASB meets in China to discuss climate reporting

‘Pressure rising’ on developing Asian aging risk: ADB

European business confidence in China plummets

Starr Insurance opens new operation in Korea

International SOS warns of ‘burnout epidemic’

IASB meets in China to discuss climate reporting

‘Pressure rising’ on developing Asian aging risk: ADB

European business confidence in China plummets

Starr Insurance opens new operation in Korea

International SOS warns of ‘burnout epidemic’

Want to read this article?

Read Next

IASB meets in China to discuss climate reporting

‘Pressure rising’ on developing Asian aging risk: ADB

European business confidence in China plummets

Starr Insurance opens new operation in Korea

International SOS warns of ‘burnout epidemic’

Related Articles