Tuesday, July 20, 2021
Few people with a policy
Insurance companies expect record losses
How expensive will the flood disasters be in the west, east and south of Germany? The Association of the Insurance Industry is preparing for the worst. But it will be particularly expensive for the state: Even in the highest risk zone, only every fourth house is insured against flooding, they say.
The general manager of the Association of the Insurance Industry, Jörg Asmussen, expects record damage after the flood disaster: “In the short term, it is becoming apparent that 2021 could become one of the most damaging years since 2013. At that time, the insured damage was 9.3 billion euros “, said Asmussen in the” Rheinische Post. “If we do not succeed in keeping global warming below the two-degree target of the Paris climate summit, then we will not be able to continue the insurance of natural hazards in the existing form.”
Asmussen pointed out that many buildings in Germany are not protected against natural hazards such as heavy rain. “Even in the highest risk zone, every fourth house in Germany is insured against floods – only every fourth house, because more would be possible: Almost all homeowners in Germany could and will continue to be insured against natural hazards.”
“Fast and unbureaucratic” payment
Due to the lack of insurance coverage, many of those affected are dependent on the announced emergency aid from the federal government. Representatives of the medium-sized economy therefore demand a “quick and unbureaucratic” payment. “In order to avoid mistakes like the Corona aid, the aid money should be paid out through the tax offices this time,” said Markus Jerger, federal manager of the Federal Association of Medium-Sized Enterprises (BVMW), the newspapers of the Funke media group.
The head of the association welcomes the announced aid, but considers flat-rate payments of the same amount to be the wrong way to go. “What is needed are tailor-made solutions.” In addition, the affected companies should be included in the planning of both the emergency aid and the billion-dollar development program of the federal government.
Federal Finance Minister Olaf Scholz announced on Sunday emergency aid of more than 300 million euros for the victims of the flood disaster. The plan is to be presented to the federal cabinet on Wednesday.
Do you need compulsory insurance?
GDV boss Asmussen rejects compulsory insurance despite the glaring insurance gap: “Compulsory insurance is not necessarily a sustainable answer to the challenges ahead. In Germany there is not a lack of offers for insurance protection, but in many places there is a lack of a responsible approach to natural hazards . If every damage is compensated in every case, state and individual natural hazard protection will fall by the wayside. “
Asmussen called for more prevention: “Adaptation to the effects of climate change is neglected in many places. Construction is still going on in floodplains, areas are sealed unhindered, investments in preventive measures accumulate at the municipal level Damage in progress, which only becomes expensive and at some point unaffordable. “
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