05.02.2014
Natural hazards

EU Parliament rejects mandatory insurance for natural disasters

The European Parliament declared itself in a vote today against the introduction of Europe-wide mandatory insurance for natural disasters. Natural risks are too varied, too complex and regionally too diverse to be encompassed by a single Europe-wide mandatory insurance. In the conviction of Members of Parliament, prevention is the best means to protect people and avert damage through natural disasters.

The German Insurance Association (GDV) supports the demand of Members of Parliament to create a culture of prevention to raise awareness among the public about natural disasters. In the view of MEPs, risk-based calculation and easily accessible information are crucial to helping consumers, municipalities and business owners to better estimate potential natural risks.

Parliament is also making a plea to regional authorities to incorporate risk prevention as a pillar of investment strategy. GDV expressly welcomes the grounds given for the recommendation: That it is more efficient for all concerned to minimise the consequences of disasters instead of just providing cover and repairing damage afterwards.

Dr. Jörg Freiherr Frank von Fürstenwerth

Jörg von Fürstenwerth, GDV Management Board Chairman:

“This resolution strengthens our conviction that intensive education and solid prevention hold out more promise than mandatory insurance. The German insurance industry is active in 7 German federal states to date with informative campaigns about natural risk prevention.”

 
Together with state governments, associations of local authorities and consumer protection agencies, an appeal is being made to increase personal provision and to inform people about the potential consequences of natural events and the resulting damage.

In addition, consumers in Saxony and Lower Saxony can already receive their personal natural risk profiles in the Internet portal zuers-public.de. The insurance industry offers to collaborate with the Federal Government in a national campaign aimed at raising awareness and promoting a national natural risk portal.

More:
>> Natural Catastrophes 2013: Insurers paid 7 billion euro for floods, storms and hail