Insurers fear above-average losses due to extreme weather in 2024
Two floods shape the claims balance for the first half of the year. Insurers expect losses of at least EUR 7 billion for the year as a whole.
After a high level of claims in first half of the year, insurers are expecting natural hazard losses of at least EUR 7 billion for 2024 as a whole. "Based on the losses to date, we assume that the natural hazard balance for 2024 will be above average overall", said Jörg Asmussen, Chief Executive Officer of the German Insurance Association (GDV). "If there are severe fall and winter storms, the total losses could be even higher."
Almost EUR 4 billion in losses in the first half of the year
Last year, weather extremes such as storms, hail, lightning and flooding caused insured losses of EUR 4.9 billion, in line with the long-term average. For the first six months of 2024, however, GDV has already registered natural hazard losses of EUR 3.9 billion. This included damage to homes, household contents, commercial and industrial enterprises and motor vehicles.
The semi-annual balance sheet shows that around EUR 2.7 billion of insured damage was caused by flooding and heavy rain, and EUR 800 million by storm and hail damage to buildings. A further EUR 400 million is attributable to damage to motor vehicles caused by storms, hail and flooding.
The first half of the year was mainly characterised by severe flooding. In June alone, insured losses totaling EUR 2 billion were incurred in southern Germany. Saarland and Rhineland-Palatinate had already been hit by around EUR 200 million at Whitsun.
Insurers demand binding measures for climate impact adaptation
In light of the semi-annual results, GDV reiterates its call to take binding measures to adapt to the effects of climate change. "We need uniform nationwide guidelines on how and where construction is to be allowed in high risk areas. It is incomprehensible that there has been no consistent ban so far on construction in flood areas", said Asmussen. What is needed is not only a swift adaptation of building law, but also a significant reduction in the sealing of surfaces. "We fear that without prevention, a spiral of ever more claims and ever higher premiums will be set in motion, and consumers will be financially overwhelmed", Asmussen said.
Insurance against all weather extremes increasingly important
Although there is a wide range of offers on the market, only just over half of buildings in Germany are comprehensively protected against all natural hazards with natural hazard insurance. For new contracts, insurers now offer homeowners' insurance with natural hazard protection. Property owners who wish to waive this protection must actively opt out. Many homeowners, however, underestimate the danger posed by heavy rain and flooding.
To assess their own risk, GDV offers the "Flood Check", providing property owners and tenants with important information on the risk of river flooding and heavy rainfall.
