Insurance Companies: Severe Weather Inflicted Substantial Damage During the Initial Six Months
According to Jörg Asmussen, the head of the German Insurance Association (GDV), we're anticipating a higher than typical impact from natural disasters in 2024. This prediction stems from the current damage assessment. If we encounter intense autumn and winter storms, the overall damage could potentially skyrocket. The damages in question encompass residential properties, household goods, commercial operations, industrial facilities, and motor vehicles.
The majority of the damage in the initial half of the year was due to floods and heavy precipitation (2.7 billion euros), with June solely seeing 2 billion euros of damage from floods in southern Germany. Storms and hail resulted in 800 million euros of structural damage, while an additional 400 million euros was incurred due to storm, hail, and flood-related motor vehicle damages.
The GDV reiterated its advocacy for "mandatory measures for climate change adaptation". They urged the implementation of nationwide standard guidelines for construction in danger zones and the reduction of surface sealing. "Without preventive measures, we foresee a vicious cycle of escalating damages and progressively higher premiums, which could put a significant financial burden on consumers," cautioned Asmussen.
Insurers, such as those affiliated with the German Insurance Association (GDV), are actively preparing for a potentially elevated loss scenario due to the predicted higher than typical impact from natural disasters in 2024. Consequently, Asmussen, the head of GDV, emphasizes the need for mandatory measures for climate change adaptation, citing the risk of a vicious cycle of escalating damages and increasing premiums that may strain consumers' finances.
