Insurance incurs $6.2 billion losses due to bad weather

Admin I Monday, May 27, 2024

 

BERLIN – Floods, hail, and other extreme weather events have caused Germany’s insurers losses totalling €5.7 billion ($6.2 billion) in 2023, according to insurance industry group GDV.

“That’s €1.7 billion more than in 2022,” said GDV Managing Director Jörg Asmussen. This is mainly due to severe and expensive hail damage to motor vehicles,” he said.

According to the association, the registered record was €13.9 billion in 2021.The storms in August 2023 alone accounted for a quarter of the total damage, €1.5 billion, the data shows.
Storm damage in Germany was high in June, but there were hardly any severe storms in autumn and winter.

Most of the insured losses, totalling over €2 billion, occurred in the southern state of Bavaria. Following closely behind was the western state of Hesse, which incurred losses of €890 million.

“The Alpine region, as well as the Taunus and Odenwald low mountain ranges in Hesse, were frequently affected by hail,” said Asmussen.

According to meteorologists, extreme weather events are occurring more frequently due to the climate crisis.

In response to recent natural disasters, there has been a renewed push from German politicians to implement mandatory insurance for natural hazards.

State premiers plan to discuss this with German Chancellor Olaf Scholz next month.
Asmussen said: “Compulsory insurance as the sole means of protection helps no one – neither homeowners nor the federal states and local authorities.

“We need climate change adaptation to be anchored in building regulations, reduce land sealing and impose building bans in flood areas.”

According to the association, on average, 54% of residential buildings in Germany are insured against all natural hazards.