Switzerland and France: What Germany can learn from compulsory insurance against natural hazards

Switzerland and France: What Germany can learn from compulsory insurance against natural hazards

According to a report by www.faz.net,

While in Germany there is discussion about compulsory insurance against natural hazards such as floods, storms and hail, such a mandatory policy has been a reality in Switzerland and France for many years. In Switzerland, almost all homeowners have unlimited insurance against flood damage, with cantonal building insurers playing a central role. They insure 2.3 million properties and therefore more than 80 percent of all buildings in Switzerland.

In Switzerland, mandatory insurance against natural disasters has helped to significantly reduce the financial burden on those affected after natural disasters. Compulsory insurance has also made it possible to build up a financial cushion with which insurers can respond to natural events with large amounts of damage. This has ultimately led to better financial stability in Switzerland.

The introduction of compulsory insurance against natural hazards in Germany could potentially have similar effects. A large part of the population would then be protected against the financial consequences of natural disasters. This would not only help affected citizens, but also stabilize the entire insurance market and reduce the financial impact of natural disasters on the country's economy.

However, it is important to take into account the specific circumstances and needs of the German insurance market in order to minimize possible negative effects. Careful planning and implementation would be crucial to ensure that the introduction of compulsory insurance against natural hazards in Germany achieves the desired positive effects.