Existential flood damage - Do I need natural hazard insurance?

Existential flood damage - Do I need natural hazard insurance?

According to a report by www.ndr.de, the last issue of “Ten Minutes of Economy” is about the enormous damage that can be caused by floods and the question of whether there should be compulsory insurance for natural hazards.

The current flood events not only have a serious impact on the people affected, but can also pose major challenges for the insurance industry. The damage caused by floods can cause enormous costs and lead to insurance companies being overwhelmed.

The introduction of compulsory insurance for natural hazards would undoubtedly lead to a change in the insurance market. Companies would have to prepare for a larger number of potential claims and create appropriate financial reserves. In addition, the level of insurance premiums for affected areas could increase to cover the increased risk.

For consumers, compulsory insurance could mean that they would be required to take out additional insurance, which would lead to higher monthly expenses. Additionally, flood protection insurance may become more difficult to obtain as demand increases and insurance companies may introduce stricter policies for certain areas.

Overall, the introduction of compulsory insurance for natural hazards would be a risk reduction measure, but would also have a significant impact on the market, consumers and the insurance industry. It remains to be seen whether this discussion will gain further momentum in the future.