German insurers pay 4.9 billion euros for natural catastrophes
Hail, storms and floods cost insurers in Germany almost five billion euros in 2023. The German Insurance Association (GDV) put the insured losses at around 4.9 billion euros on Thursday, 900 million more than in the previous year.
"Unfortunately, they are therefore fairly stable at the high level of the long-term average," said GDV Managing Director Jörg Asmussen. The largest share of the loss - 3.6 billion euros - has to be paid by property insurers , for whom it was a slightly below-average claims year. However, with 465,000 claims amounting to 1.3 billion euros, the motor insurers ' balance sheet was worse than average - mainly due to the frequent hailstorms in the summer.
The natural catastrophe balance sheet was particularly devastating in August, when severe storms caused insured losses of 1.5 billion euros. Damage of 2.7 billion euros was caused by hail and storms at the end of the year, while 900 million euros were attributable to the consequences of flooding and heavy rainfall. Only 54 percent of homeowners are still insured against the latter phenomena. The insurance rate against these natural hazards is only rising slowly - even after the flood disaster in the Ahr valley three years ago and despite climate change. "Many property owners are not aware of the natural hazards that threaten their homes," said Asmussen. Nevertheless, GDV is not advocating compulsory insurance, but rather prevention and the adaptation of building regulations in areas at risk.
Read also:
- Year of climate records: extreme is the new normal
- Precautionary arrests show Islamist terror threat
- UN vote urges Israel to ceasefire
- SPD rules out budget resolution before the end of the year
- Despite the high insured losses from natural disasters like hail, storms, and floods, German insurers continue to face billions in claims, with a total of 4.9 billion euros paid out in 2023.
- In the aftermath of the severe weather extremes in 2023, property insurers in Germany bore the brunt of the damage, with 3.6 billion euros in payouts, while motor insurers struggled with a worse-than-average year due to frequent hailstorms.
- Consequent to the substantial insurance payouts for natural catastrophes, the German Insurance Association (GDV) encourages increased awareness among homeowners about the risks of natural hazards and advocates for the adaptation of building regulations in at-risk areas, rather than imposing compulsory insurance.
Source: www.ntv.de
