Germany’s insurance industry has introduced a proposed natural catastrophe reinsurance vehicle called Elementar Re, intended to serve as a backdrop for primary insurers facing increasing losses associated with climate risk.
The concept, which was released by the German Insurance Association (GDV), centers around pooling high-risk residential properties, and adding a state-supported layer of protection for extreme events.
With the Elementar Re model, the GDV said insurers are for the first time, presenting a concrete proposal for how a nationwide safeguard system in Germany could be designed.
According to the GDV, Elementar Re will rely on two private safeguards in the event of a claim, including its own reinsurance and a gradually built-up reserve fund.
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