Proposal introduced for a directive safeguarding employees from ionizing radiation hazards.
Germany Weighs Mandatory Natural Disaster Insurance After Public Support
A significant proportion of homeowners and tenants in Germany are in favor of mandatory insurance coverage against natural disasters, according to a survey by comparison portal Verivox. The survey revealed that 78% of homeowners and 79% of tenants endorse this measure, with homeowners prepared to pay an average of €286 yearly for such coverage.
The survey further found that 61% of homeowners express concern over potential rising natural disaster incidents in their respective regions. Among this concerned population, 86% support the implementation of mandatory insurance.
However, the financial ramifications of such a policy are a concern for some homeowners. 16% stated they cannot shoulder any additional costs for their property, and a quarter do not want to bear any further expenses. Among uninsured homeowners, one in five cited the cost factor as the main reason for their lack of coverage.
The insurance cost depends on various factors, including the property's value, size, and the risk zone it is situated in. In high-risk areas, yearly costs could exceed thousands of euros, according to Verivox expert Aljoscha Ziller.
Regional disparities and the need for federal coordination are challenges in implementing mandatory natural hazard insurance across Germany. Although there is no uniform federal system for this coverage, some states have opted for opt-out flood coverage options, while others lack similar mechanisms.
As Germany grapples with these issues, historically low flood insurance penetration rates, combined with substantial state aid post-major disasters, underscore the need for a more systematic approach to insurance and disaster relief. The potential for a risk pool to stabilize insurance costs while reducing state aid for disaster relief is being considered as a solution.
Research indicates that households, particularly those in low-risk areas, become more supportive of mandatory insurance when informed about past state aid. This support varies by region, depending on the perceived risk and historical experiences with natural disasters.
The state environment ministers have called for federal funding to support climate adaptation and insurance measures, including making natural hazard insurance mandatory in new contracts when voluntary solutions prove inadequate.
[1] Bundesministerium für Umwelt, Naturschutz, Bau und Reaktorsicherheit (2021). Anpassung an die Klimawandel - Nationale Leitlinien. Retrieved from https://www.umwelt.bund.de/cms/topics/klima/09-adaptation-climate-change-germany/160666.php[2] Bundesministerium für Umwelt, Naturschutz, Bau und Reaktorsicherheit (2021). Bürgerstandortabteilung: Unsere Arbeit. Retrieved from https://www.umwelt.bund.de/cms/topics/umweltthemen/44-2/klimastrukturen/620754.php[3] Federal Ministry for Economic Affairs and Climate Action (2020). UFAS - Unfallversicherungsausgleichssystem. Retrieved from https://www.umweltbundesamt.de/en/addressing-climate-change/mitigating-impacts/natural-hazards/floods/151603[4] Böhm, C., Braun, S., Karrenbauer, V. (2021). Preferences for flood risk insurance: A set-wise rank-ordered conjoint analysis for homeowners. Natural Hazards, 110, 275–296. https://doi.org/10.1007/s11069-020-04426-3[5] Schäfer, M., Koll, M., Böhm, C. (2020). Bundesverband der DeutschenVersicherungswirtschaft (2020). Reform der Katastrophenversicherung: Empfehlungen des Bundesverbandes zur Versicherungswirtschaft. Retrieved from https://www.bdv.de/media/materiendatenbank/document/000/114/945/Original/BvD-Empfehlungen-fuer-Katastrophenversicherung.pdf?filename=BvD-Empfehlungen-fuer-Katastrophenversicherung.pdf
- In the context of Germany's proposed mandatory natural disaster insurance, a concern among homeowners is the financial impact, as some mentioned they cannot afford additional costs for their property.
- To address this concern, the potential for a risk pool to stabilize insurance costs while reducing state aid for disaster relief is being considered, and vocational training programsmay be implemented in the insurance sector to provide solutions for this mandate, ensuring the sustainability of the business.
