Unforeseen Minimized Disruption from Natural Calamities in First Half of 2025's Financial Report

In the first half of 2025, natural hazard damages in Germany have been below average, according to Joerg Asmussen, CEO of the German Insurance Association (GDV). However, Asmussen emphasized that the long-term trend shows a clear increase in extreme weather events and damages, a concern that should not be overlooked.

The SchadenBusiness Naturgefahrenbilanz 2024 report revealed damages of 5.5 billion euros from weather extremes, covering damages to homes, household contents, commercial and industrial properties, and motor vehicles. This figure is expected to rise, with the SchadenBusiness Prognose 2024 predicting at least 7 billion euros in damages from weather extremes for the entire year.

Despite an unusually calm weather period in Germany, Asmussen did not express relief. He called for comprehensive protective measures against extreme weather events due to climate change. The German government has responded, proposing mandatory insurance for all residential buildings against elemental damages such as floods, heavy rain, or earthquakes.

The GDV supports this discussion, with its CEO expressing readiness to contribute to the important societal debate. The GDV CEO also supports the examination of a state-owned reinsurance and the discussion about an opt-out solution.

Insurers expect an overall below-average damage year for 2025, with estimated damages around 4.5 billion euros if damages in the second half are only average. However, other natural hazards such as flooding and heavy rain have resulted in additional 100 million euros in damages.

In property insurance, damages from storms, hail, and lightning amounted to around 500 million euros. In motor vehicle insurance, damages from storms and flooding amounted to 350 million euros.

The GDV statistics also show that flood damages more than doubled. This underscores the need for sustainable protection for people, buildings, and infrastructure, which can only be achieved if the areas of insurance, prevention, and climate adaptation work hand in hand.

The German government's call for a stronger focus on extensive preventive measures for protection against elemental damage in 2025 is a step in the right direction. With the increasing risks from climate change and natural disasters, comprehensive protective measures are crucial to ensure the safety and security of the German population and its infrastructure.

Unforeseen Minimized Disruption from Natural Calamities in First Half of 2025's Financial Report