"We need a comprehensive concept against extreme weather"

Just three years after the Ahr Valley flood, we are witnessing another major flooding disaster in Germany. The question about compulsory insurance in Germany has now come up again. The solution, however, does not lie in a single, isolated compulsory insurance program. Such a program would not have prevented a single loss. It lacks solidarity and it is undemocratic because it takes away customers' freedom of choice. At Allianz, we offer a natural hazard protection option with each residential building policy - a voluntary opt-out must always be possible. 

We believe that extreme weather events will increase in intensity and frequency as a result of climate change. We therefore need a comprehensive concept against natural hazards that is based on three building blocks: prevention and protective measures to adapt to the effects of climate change, insurance cover calculated on a risk-adjusted basis and state support in the event of extreme disasters. 

Damage to buildings can be prevented or at least reduced if we increase social risk awareness and implement comprehensive prevention and protection measures against flooding. These include higher and stronger dams, but also construction bans in flood areas, a requirement for water-resistant building materials and better flood protection systems. 

Every citizen should know the individual risk situation for their house or apartment and check the various insurance options. With the Allianz home risk assessment, we offer the possibility to determine the individual risk of natural hazards based on the building address and to receive specific checklists. Via the Allianz severe weather warning, an AI-based solution, our customers can also receive weather warnings by SMS, along with tips for preventive measures.

As an insurance organization, we continue to see it as our duty to ensure the insurability of buildings, even in times of climate change. We expect that the severity of damage will continue to increase. Also conceivable are rare catastrophic scenarios that could exceed the capacity of the insurance industry and require state instruments. We support GDV's* position of limiting the impact on the market in the event of extreme natural catastrophes through so-called stop-loss regulations (occurrence of a 200-year loss or higher). This will also ensure that the necessary preventive measures are finally tackled with the necessary urgency. 

Switzerland successfully shows us how climate impact adaptation, risk-adequate offers from insurers and support from the state in the form of a private partnership can be effectively combined. This is the only way we can break the spiral of increasing losses from climate risks and extreme weather events and rising premiums in Germany, too.