German insurers call for state action on flood prevention
Insurance prices could double over next few years
Germany is still planning, building and renovating as if climate change is not happening, with flood risk rising fast as a result, and mandatory insurance is not the answer, according to the German insurance association (GDV).
The association has once again called on the federal government to accept that property risk has fundamentally changed and that urgent preventative action is needed at both regional and national levels.
“States and municipalities have major deficits when it comes to area and building planning as well as prevention. There has been too little investment here for decades,” said Jörg Asmussen, managing director of the GDV.
“You can see that very clearly these days when you look at the situation of the dykes in the affected areas. Many problems, especially when it comes to flood protection, are home-made. The prolonged rain has now made them visible,” he added.
German insurers believe that three core measures are urgently needed. “The construction of buildings in designated danger areas should end. Prevention and adaptation to climate impacts should be anchored in state building regulations. And the public sector should clearly identify the danger situations via a nationwide natural hazards portal,” said Asmussen.
“Without dealing with risks transparently, it will be difficult to convince those affected to take preventive measures. Other countries such as Austria and Switzerland are years ahead of us here. Only prevention prevents damage or reduces its extent,” he added.
The GDV said that the insurance industry continues to reject mandatory insurance for natural hazards as the sole measure to protect against extreme weather events, as required by the federal states.
“A large part of the damage occurs because adaptation to climate change is still not taken seriously. Only prevention prevents damage or reduces its extent. Compulsory insurance alone does not solve a single problem. Unfortunately, we still plan, build and renovate in Germany as if climate change and extreme weather events didn’t exist,” said Asmussen.
Against this background, the insurance sector has presented a concept to try to spark proper debate and action.
“In addition to insurance protection, it also provides for the components of prevention, adaptation to climate impacts and a solution with government involvement in the event of a natural disaster with extremely high levels of damage,” said Asmussen.
“This is the only way premiums can be stabilised to some extent in the medium term… if prevention and climate adaptation continue to be neglected, it will be expensive for customers in the medium and long term. The prices are then likely to double within a few years,” added the GDV head.
This applies equally to federal, state and local governments, as well as to private individuals and businesses, concluded Asmussen.
