Most damaging natural disasters for the insurance industry in Germany 2022

The German insurance industry has seen its share of expensive natural disasters, but in recent history the flash flood disaster in July 2021 exceeded others recorded since the 2000s. Storm Bernd brought torrents of heavy rainfall to several German states, subsequently leading to rivers overflowing and massively destroying residential areas built near the banks. The flood also claimed lives. Property damage resulted in 9.1 billion euros worth of claims.

Insuring against damage

The July flood ravaged both businesses and households. Residential buildings in Germany are well insured against damage from storms and hail. In fact, coverage reaches between 90-100 percent in all German federal states. Meanwhile, except for Baden-Württemberg in the south, natural hazard insurance coverage is noticeably lower. Based on a survey conducted in Germany in 2020, the leading insurance companies with whom households had a contract included Allianz, HUK Coburg and ADAC.

In this climate

Worldwide, several floods have been recorded as the most expensive for insurance industries. Among them, the 2011 flood and landslide in Thailand, as well as the July 2016 floods in China. After the recent flooding disaster in Germany, discussions about climate change being the driver of such events are getting louder, with scientists sounding the alarm that further catastrophes might occur in the near future due to the advanced state of global warming.