Greens demand nationwide compulsory insurance against natural hazards!

Greens demand nationwide compulsory insurance against natural hazards!

In Germany, the introduction of compulsory insurance against natural hazards is increasingly becoming the focus of the political debate. Cornelia Lüddemann, the chairwoman of the Green parliamentary group in Saxony-Anhalt, is calling for solidarity insurance for natural disasters, which should be rolled out across the entire federal territory. In your opinion, Saxony-Anhalt could act as a pioneer here. The Greens are planning to launch a Federal Council initiative to achieve comprehensive regulation. Lüddemann also criticizes the long processing times that affected citizens and companies currently have to endure and emphasizes the urgency of changing the law.

Environment Minister Armin Willingmann from the SPD supports the idea of ​​compulsory insurance and emphasizes that state aid programs after natural disasters must be reduced in the long term. “A bill to expand residential building insurance to include elemental protection should be drawn up,” said Willingmann. It is also being examined whether building owners should be given the opportunity to refuse natural hazard insurance, which would, however, exclude them from all state aid in the event of damage.

Political support and resistance

While the Greens and the SPD are in favor of compulsory insurance, there is also resistance within the political landscape. The FDP parliamentary group rejects such an insurance requirement for owners. Instead, they demand that insurance companies should be obliged to make offers to insure against natural hazards.

A look at the past shows the urgency of these measures: in recent years, natural disasters have caused immense damage, which without appropriate insurance cover can even threaten the existence of many citizens and companies. At the initiative of Baden-Württemberg and North Rhine-Westphalia, the Federal Council has already decided on compulsory natural hazard insurance. This decision comes against the background that a lack of insurance coverage burdens the federal and state governments with high follow-up costs, which once again shows the need for a political solution. The federal government is now called upon to develop a corresponding law.

Exemplary models and challenges

In the political discussion, various models are being discussed in order to find a possible solution. An example is the solidarity multi-risk insurance, as offered in France by the “Pool Catastrophes Naturelles”, or the Extremus insurance, which is brought into play as a public-private partnership. Reinsurers such as Hannover Re estimate the insured losses from natural events in other countries, such as the earthquakes in Turkey and Syria, at 3.5 to 4 billion euros.

The flooding in the Ahr Valley in 2021 also illustrates the problems that a lack of insurance protection brings with it: In total, insured losses amounted to 8.5 billion euros in 213,000 claims. In many vulnerable regions, companies are having difficulty obtaining insurance coverage because insurers have become less willing to offer natural hazard coverage. Particularly in flood areas, insurance coverage is often no longer available, which once again underlines the demand for compulsory insurance.

Overall, the political debate about compulsory insurance against natural hazards is accompanied by different opinions. While some politicians and associations are skeptical about this step, economists from the Ifo Institute advocate the introduction of such insurance. The introduction of mandatory natural hazard coverage could not only ensure greater safety, but also potentially reduce costs for the federal and state governments in the long term.

The political process remains exciting and it remains to be seen how quickly a corresponding law can be introduced. The coming months will be crucial for the future of insurance coverage in Germany.