Financial expert explains: Are we still sufficiently insured for natural disasters?

Financial expert explains: Are we still sufficiently insured for natural disasters?

According to a report from www.zeit.de, reinsurers face major challenges in light of natural disasters and the resulting losses. Ernst Rauch, chief climatologist at Munich Re, explains that the largest loss events in the past were caused primarily by earthquakes, while today the focus is on weather-related disasters. Damage is increasing, both due to increased values ​​and more frequent extreme weather.

This development has an impact on the insurance market and customers. As the amount of damage increases, insurance premiums also rise. Regions with a high risk are particularly affected, where the premiums are ten to twenty times higher than in non-hazard areas. Higher premiums could also be expected in Germany in the future, as climate research predicts an increase in extreme weather events.

Rising risk premiums could mean that some consumers can no longer afford insurance. It could also happen that certain regions are excluded from insurance due to high premiums and high risk.

Ernst Rauch also sees the vulnerability of buildings as an important issue in order to slow down the increase in damage. Inappropriate construction methods and a lack of stability could lead to further increases in risk premiums. It therefore seems to be urgently necessary to adapt both the construction method and the insurance premiums to the increasing risk.

Overall, it is clear that increasing losses from natural disasters can have far-reaching effects on the insurance market, consumers and the construction industry. It is more important than ever to adapt to these changes and take appropriate measures to minimize financial risks.

Source: www.zeit.de