- Allianz denounces shortcomings in German flood protection
Allianz Criticizes Shortcomings in German and Bavarian Flood Protection After June Floods
Allianz has criticized flaws in German and Bavarian flood protection measures following the June floods. CEO Oliver Bäte, speaking in Munich while presenting the company's half-year results, drew a negative comparison with the Netherlands: "The most important thing, even in Bavaria, is that we improve our damage prevention efforts," he said. "You might ask why we continue to have such high damages in Germany." Other countries like the Netherlands, "which have been living below sea level for centuries," are better at prevention.
292 Million Euros in Damages from June Floods
Allianz alone received 11,500 customer damage reports due to the June floods along the Danube and its tributaries, with damages totaling 292 million euros. In total, the June floods are estimated to have caused around two billion euros in insured damages. Including uninsured damages, the total is likely to be significantly higher.
Bäte's criticism includes the fact that many municipalities along the Danube have designated building areas in floodplains over the past few decades. Additionally, the Bavarian state government has only completed two of seven large flood retention basins planned over twenty years ago. Bayern and the other 15 federal states are calling for the introduction of compulsory flood insurance, which is opposed by many companies, including Allianz, due to fears of high costs.
Positive Business Figures
In terms of business figures, Allianz performed better than expected in the first half of the year. Its second-quarter operating result increased by four percent to 3.93 billion euros, with a total of 7.9 billion euros for the first half. All three business areas - property and casualty insurance, life and health insurance, and asset management - showed improvements.
The company's target for the whole year is an operating profit of 13.8 to 15.8 billion euros. However, Allianz, like its neighbor Munich Re, is being cautious. It's too early to change the outlook, said CFO Claire Coste-Lapoutre.
The floods in June caused significant damages, with Allianz alone reporting 292 million euros in claims. This highlights the urgent need for improved flood protection measures, as CEO Oliver Bäte critically noted, citing countries like the Netherlands as examples of better prevention methods.
