Heavy rains and floods cost German insurers one billion euros extra last year

Heavy rainfall and flooding caused insured damages worth 2.6 billion euros in Germany last year, around one billion euros more than the long-term average, industry association GDV said. “The consequences of climate change are becoming increasingly noticeable,” said the organisation’s managing director Jörg Asmussen.

Insured losses caused by all natural hazards - including storms and hail - totalled 5.7 billion euros in 2024, with people in the south of the country hit particularly hard, according to the insurers’ annual statistics.

The lobby group called for increased prevention and protection measures. “The figures speak for themselves: climate impact adaptation must be a priority for the new German government,” Asmussen said, adding that compulsory insurance alone will not prevent damage. “What we need is an overall concept for natural hazards that includes preventive measures as well as an insurance solution. This is the only way to create long-term security in the face of climate change - for people and for municipal infrastructure."

The total damage caused by extreme weather events is significantly higher because not all of it was covered by insurance. Only half of the damage caused by flooding in the south of the country last year was insured, according to estimates.

The government plans to introduce a compulsory insurance for residential buildings before the end of this legislative period, justice minister Stefanie Hubig said. “Climate change is progressing and we won’t cope without better insurance cover in the future.”