Insurance Coverage - Inadequate flood protection facing scrutiny among political figures.
Insurance companies have been voicing their concerns about the absence of preventive measures against floods for years. GDV estimates that over 320,000 houses are located in areas prone to flooding. The association welcomed the idea of the Bavarian Prime Minister Markus Söder (CSU) to involve insurers in a discussion - but, they say, these conversations should have happened a lot sooner. "We've been waiting for three years to sit down at the table," said Hauner.
The reason for the press conference was the ongoing debate on the potential implementation of compulsory insurance for damages caused by floods and landslides. The 16 federal states are in favor of it, while insurers reject the idea due to the expected high costs. In France, there is mandatory coverage for damages caused by natural hazards with state involvement. However, GDV considers the French model inappropriate. "The system is flawed, it's unstable," said Anja Käfer-Rohrbach, the deputy managing director. Moreover, GDV claims that in France, the state covers any damages not covered by the French natural disaster fund in the event of major disasters.
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The flooding in Berlin has once again brought the issue of inadequate flood protection to the forefront, with politicians like Markus Söder calling for action. Despite warnings from insurance companies like GDV about the potential risks, many houses in Germany remain unprotected. The recent storm has caused significant damage, leading to calls for compulsory insurance coverage for flood and landslide damages. However, this proposal has met resistance from insurers due to its financial implications. France, on the other hand, already has mandatory insurance for natural hazard damages, but the GDV believes their system is flawed and unstable. The German state then covers any uncovered damages during major disasters. The aftermath of the flooding in Berlin is expected to result in numerous insurance claims, highlighting the need for improved flood protection measures.
