German insurers recorded lower losses from winter storms last year, according to GDV

German insurers recorded lower losses from winter storms last year, according to GDV

According to a report by Tagesschau.de, 2022 saw the most severe winter storms in Germany since 2002, including hurricanes “Ylenia”, “Zeynep” and “Antonia”. However, compared to 2021, which was marked by the flood disaster in the Ahr Valley, the amount of damage caused by storms has decreased significantly.

According to the General Association of the German Insurance Industry (GDV), storms caused insurance losses nationwide in the amount of around four billion euros in 2022. This corresponds to around a third of the damage from 2021. At that time, insured losses as a result of the flood disaster in the Ahr Valley amounted to around twelve billion euros.

According to the GDV, the federal states of North Rhine-Westphalia with a loss total of around 790 million euros and Bavaria with almost 700 million euros are at the top of the statistics. Lower Saxony has the highest number of claims with 66.8 reports per 1000 contracts.

The hurricanes “Ylenia”, “Zeynep” and “Antonia” in February 2022 are described as particularly devastating and caused more than a quarter of the total damage. They were the most severe winter storms since 2002.

Of the insured losses, around 3.1 billion euros were attributable to property insurance such as residential building or household contents insurance. The remaining 900 million euros were taken over by motor vehicle insurers. The GDV natural hazard balance sheet only takes into account insured damage caused by storms, hail, lightning, heavy rain and floods. Natural damage such as earthquakes or floods are generally not insured.

The insurance industry is calling for more measures to prevent insurance losses, such as a legal ban on construction in areas at risk of flooding. However, the introduction of compulsory insurance against natural hazards is not seen as a solution.

The lower amount of claims in 2022 compared to 2021 may have an impact on the insurance market. If fewer insurance claims occur, this also means lower costs for insurers. This can have a positive effect on the premium amount for insurance customers. However, insurance customers should continue to make sure that they are adequately insured, especially when it comes to natural hazards. In addition, the decline in the amount of damage could lead to the insurance industry increasingly calling for measures to prevent insurance losses and these could possibly be discussed politically.

Source: According to a report from www.tagesschau.de