Climate change: Insurers warn despite sinking skulls!

Climate change: Insurers warn despite sinking skulls!

In the first half of 2023, extreme weather events in Germany caused insured losses of around one billion euros. This number is below the long-term average, as Jörg Asmussen, the general manager of the General Association of the German Insurance Industry (GDV), reports. Damage from storms, hail and lightning totaled around 500 million euros, while a further 100 million euros in damages resulted from natural hazards such as floods and heavy rain.

In motor insurance, damage from storms and floods amounted to 350 million euros. The GDV statistics take into account damage to houses, household goods, commercial and industrial businesses and motor vehicles. Asmussen predicts that extreme weather in 2023 will cost less overall than the long-term average, assuming no severe storms occur in the fall and winter. The GDV expects natural hazard damage of around 4.5 billion euros for the entire year, which represents a reduction compared to the originally expected 6.3 billion euros. Nevertheless, the extent of the damage remains high.

Long-term trends and climate change

Despite the current lower damage figures, the GDV warns of a long-term trend towards an increase in extreme weather events. A central point is the increased focus on comprehensive prevention measures and close cooperation between insurance, prevention and climate adaptation. These points were also confirmed in the comprehensive analysis of the extent of damage in 2024, where floods and other natural events in Germany caused insured damage amounting to 5.7 billion euros.

The federal states of Bavaria and Baden-Württemberg were particularly affected in 2024, with around 1.6 billion euros in insured damage each, the main result of floods in June. Heavy rain and flooding caused damage of 2.6 billion euros nationwide alone, which is around one billion euros above the long-term average. North Rhine-Westphalia recorded losses of around 613 million euros, driven by storms and hail, while Lower Saxony was mainly affected by similar weather events.

Inadequate insurance coverage

A truly alarming detail is that a significant portion of the damage was not insured. Estimates for the affected federal states indicate that of over four billion euros in Bavaria and Baden-Württemberg, only around half was actually insured. This illustrates the important concern that Jörg Asmussen emphasizes: the need for adaptation to climate impacts and the development of an overall concept to combat natural hazards.

The current and projected damages highlight the urgent need to address the impacts of climate change and take appropriate action to prevent future losses. Consumers, especially in the most affected regions, are faced with the challenge of becoming aware of the risks of natural events and protecting themselves accordingly.

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