Climate change threatens affordable building insurance: Financial expert warns of rising premiums and uninsurable risks.

Climate change threatens affordable building insurance: Financial expert warns of rising premiums and uninsurable risks.

According to a report by www.sueddeutsche.de, warns R+V CEO Norbert Rollinger that climate change could lead to unaffordable building insurance. According to Rollinger, if global warming were to reach three or four degrees, insurance coverage in the building sector would hardly be possible. This would lead to unpredictable and extremely expensive insurance quotes. Rollinger calls for urgent measures to be taken to adapt to climate impacts, otherwise insurance premiums will double in the next few years.

As an economic expert, I see this as a potentially serious burden for the insurance market and consumers. The effects of climate change could lead to increased vulnerability to more extreme weather events, which will pose significant challenges for insurance companies. The likelihood and severity of claims could increase, resulting in increased insurance premiums and reduced availability of insurance coverage. This would not only increase the financial burden on consumers, but also affect the economic viability of insurance companies.

It is essential that both governments and affected companies take action to mitigate and prepare for the impacts of climate change. Increased regulation and promotion of climate-resilient construction and the introduction of incentives to adapt to climate impacts could help mitigate the impact on the insurance market and consumers. If no action is taken, there is a risk that insurance will become increasingly unaffordable and the overall insurance landscape will deteriorate.