The natural disasters [4] that have occurred in Germany in the past few years have generated 80 billion EUR (87 billion USD) worth of damages. The July 2021 deadly floods have alone resulted in material damages amounting to 35 billion EUR (38.1 billion USD). Environmental experts estimate that this cost could range between 280 and 900 billion EUR (304.6 and 979.1 billion USD) by 2050.
Despite the increasing climatic loss experience, more than half of the German population is not insured against natural risks.
To address this situation, the Bundesrat (German Federal Council) is calling upon the federal government to make underwriting natural catastrophe insurance compulsory throughout Germany.
Other industry professionals are however opposed to this proposal which, according to them, would lead to an increase in the insurance and housing costs.