According to an AM Best commentary, the debate over Germany’s compulsory natural catastrophe coverage is hindered by the absence of political agreement between federal states and the central government.
AM Best’s report titled, “Political Consensus the Missing Ingredient for German Natural Catastrophe Solution,” highlights that, following the 2021 flooding in Southern Germany, there have been renewed calls for a state-backed system to provide comprehensive natural hazard insurance protection.
This would cover damage from flooding, backwater, earthquakes and snow pressure, similar to systems in other major European economies.
The report examines how proposals to address the protection gap caused by flooding have exposed significant divisions between the insurance industry and politicians, and among re/insurers themselves.
FULL original publication HERE
