As the anniversary of the devastating Ahr Valley flood approaches, Germany’s insurance industry association, the Gesamtverband der Deutschen Versicherungswirtschaft (GDV), is calling for a construction moratorium in areas deemed at high risk for natural disasters.
Speaking to the “Rheinische Post”, GDV CEO Jörg Asmussen emphasized the need for a holistic approach to mitigating escalating natural hazard risks. While insurance coverage plays a crucial role, he stressed that it is insufficient on its own.
The GDV advocates for a comprehensive strategy encompassing effective preventative measures and climate adaptation. Key elements include climate-resilient urban planning, targeted reduction of impermeable surfaces, a binding construction ban in areas of extreme hazard and mandatory climate risk assessments during the building permit process.
Asmussen also expressed openness regarding the German government’s planned mandatory natural disaster insurance policy. Acknowledging the coalition agreement’s inclusion of natural disaster protection as a priority, he suggested the current proposal could provide a solid foundation, specifically praising the consideration of an “opt-out” solution linked to an obligation to offer insurance. However, he cautioned that compulsory insurance alone will not automatically reduce damages or lower premiums.