Climate change threatens building insurance: financial expert warns of priceless consequences.

Climate change threatens building insurance: financial expert warns of priceless consequences.

According to a report by www.t-online.de, scientists warn about the consequences of climate change, especially with regard to extreme weather events. These alarm bells will also ring from the insurance industry, which warns of priceless consequences. Norbert Rollinger, CEO of R+V Versicherung and President of the General Association of the German Insurance Industry (GDV), expressed concern about the possible effects of climate change on the affordability of building insurance. He warns that if global warming reaches three or four degrees, insurance coverage in the building sector will no longer be possible. Insurance premiums could double if no measures are taken to adapt to climate impacts.

The potential impact of this development on the insurance market is serious. Declining insurance options in high-risk areas could lead to an increase in claims costs, creating major challenges for insurance companies. Doubling insurance premiums would in turn place financial burdens on consumers, especially those living in danger zones.

Unaffordable insurance could pose a serious threat to the construction and real estate industries, as the risk of uninsured damage could lead to a decline in investment and property values. A possible increase in damage costs due to extreme weather events could also impact government disaster relief programs, which could also come under pressure due to increasing burdens.

It is clear that the potential incalculable consequences of climate change on the insurance industry, the consumer and the construction and real estate industries pose serious challenges. It is urgent that climate adaptation measures are taken to mitigate these potential impacts and maintain insurance affordability.