Insurance firms distributed 1.5 billion euros in compensation to individuals affected by floods

Heavy rainfall in Germany has caused extensive flooding, resulting in significant damage and losses. According to recent reports, approximately 250,000 individual flood damage claims have been made, with total insured damages estimated to be around seven billion euros.

The flood catastrophe has raised concerns about the country's preparedness for such events in the face of climate change. Experts warn that climate change is expected to cause an increase in heavy rain, which poses a challenge for society as a whole, not just insurers.

Jörg Asmussen, managing board member of the German Insurance Association (GDV), has stated that insurance companies can handle disasters like the flood catastrophe. However, Asmussen expressed skepticism about the possible introduction of compulsory insurance and suggested a comprehensive concept that includes state and private prevention.

In response to the floods, the GDV has paid out over 1.5 billion euros in flood damage claims, with private households receiving around one billion euros and businesses, including many small and medium-sized enterprises, receiving around half a billion euros. Additionally, approximately 16,000 employees of insurers and insurance brokers were deployed in the flooded areas, along with an additional 2,500 external personnel, such as appraisers.

The floods also resulted in the destruction of around 50,000 cars. Economist Bernd Raffelhüschen, who is sceptical of the introduction of a mandatory insurance system in Germany, will make concrete proposals in autumn to address the challenge of increased heavy rain due to climate change.

Addressing the challenge of increased heavy rain due to climate change is a societal issue, requiring the efforts of individuals, businesses, and the government. Adapting to the effects of climate change, such as increased heavy rain, is a societal responsibility, and adapting to these changes is not limited to the insurance sector.

Climate change is causing changes in weather patterns, including an increase in heavy rain, and it is essential for society to adapt to these changes to minimise the impact of future floods. By working together, we can ensure that our communities are better prepared for the challenges posed by climate change and reduce the damage caused by extreme weather events.

Insurance firms distributed 1.5 billion euros in compensation to individuals affected by floods