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Compulsory insurance against natural hazards - what this means for homeowners
According to a report from www.volksstimme.de, Saxony-Anhalt's Prime Minister Reiner Haseloff has once again called for mandatory natural hazard insurance. In view of the current flood situation and the possible increase in such events due to climate change, Haseloff described compulsory insurance in the event of natural disasters as an urgent issue. Die Forderung nach einer verpflichtenden Versicherung gegen Elementarschäden ist nicht neu und wird auch von Umweltschutzminister Armin Willingmann seit Jahren unterstützt. There is currently no compulsory insurance against natural hazards in Germany. The Conference of Justice Ministers expressed caution in 2017 and feared that such an obligation could restrict fundamental rights. Minister Willingmann emphasized that it is often difficult for homeowners in risk areas to voluntarily protect themselves against natural hazards...
Compulsory insurance against natural hazards - what this means for homeowners
According to a report by www.volksstimme.de, Saxony-Anhalt's Prime Minister Reiner Haseloff has once again called for mandatory natural hazard insurance. In view of the current flood situation and the possible increase in such events due to climate change, Haseloff described compulsory insurance in the event of natural disasters as an urgent issue. The demand for compulsory insurance against natural hazards is not new and has been supported by Environmental Protection Minister Armin Willingmann for years.
There is currently no compulsory insurance against natural hazards in Germany. The Conference of Justice Ministers expressed caution in 2017 and feared that such an obligation could restrict fundamental rights. Minister Willingmann emphasized that it is often difficult for homeowners in risk areas to voluntarily insure themselves against natural hazards.
As an economic expert, I see the potential impact of mandatory natural hazard insurance on the insurance market and consumers. Such compulsory insurance would lead to an increase in demand for corresponding insurance products. This could result in an increase in insurance premiums, as insurance companies would have to take the higher risk of natural disasters into account in their calculations. Consumers, especially in risk areas, would therefore have to accept higher costs for home and contents insurance.
In addition, mandatory natural hazard insurance could reduce citizens' personal responsibility for protecting their properties, as they could trust that the insurance will step in in the event of damage. This could lead to a neglect of preventive measures against natural hazards, which could lead to higher damage and costs for insurance companies and society as a whole in the long term. It is important that when discussing mandatory natural hazard insurance, the long-term effects and possible countermeasures are also taken into account.
Read the source article at www.volksstimme.de