Increasingly frequent and severe natural disasters are leading to significant insurance claims across Germany. In 2024 alone, damages from events like heavy rain, floods, and hailstorms amounted to 5.7 billion euros nationwide. The southern regions, especially Bavaria and Baden-Württemberg, bore the brunt with nearly half of the total losses. The German Insurance Association (GDV) underscores the urgent need for a comprehensive approach to climate change adaptation. This includes not only insurance solutions but also preventive measures to mitigate future risks.
Despite the substantial insured losses, the actual financial impact is likely higher since not all damages are covered by insurance. To address this, the German government plans to introduce mandatory insurance for residential buildings, aiming to provide better protection against climate-induced damages. However, experts argue that compulsory insurance alone is insufficient. Instead, a holistic strategy encompassing preventive actions and policy measures is essential to ensure long-term resilience against the escalating threats posed by climate change. As these challenges mount, the importance of climate adaptation becomes ever more pressing for safeguarding both infrastructure and communities.
