Financial expert warns of rising insurance costs due to climate change

Financial expert warns of rising insurance costs due to climate change

How www.hna.de reports, homeowners insurance has become unaffordable in the United States due to increasing storm damage. Experts warn of similar developments in Germany due to climate change. There is a possibility that premiums will double within the next ten years. Insurers are calling for government support, while consumer organizations are calling for affordable natural hazard insurance for everyone. A new study recommends a mix of compulsory state insurance and private insurance. The GDV proposes a public-private partnership in which the state would cover the costs above a certain damage limit. But GDV association head Asmussen emphasizes that prevention is the key to avoiding damage or reducing its amount.

According to a report by www.hna.de, there is a possibility that home insurance costs in Germany will double in the next ten years. Given climate change and the increase in extreme weather events such as storms, hail and floods, insurance premiums could increase dramatically. Experts' warnings about the effects of climate change on the insurance market should be taken seriously.

Experts emphasize that the insurance industry alone cannot meet the challenges of climate change and are therefore calling for government support. Consumer organizations campaign for affordable natural hazard insurance for everyone. The situation may require an adjustment to the structure of elemental protection, as a new study recommends.

In view of these developments, it is important that politics and business work closely together to take preventative measures. Implementing preventive measures to avoid damage or reduce its amount is crucial.