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.
