GDV: Germany will not have a mandatory insurance scheme for natural catastrophes

22 June 2015 — Alexandru CIUNCAN
Germany will not have a mandatory insurance scheme for natural catastrophes. This is the conclusion of the Conference of German States' Ministers of Justice from June 18 2015, according to the representatives of GDV - The German Insurers' Association present at IIF - Property Insurance in a Stormy Era.

Basically, a recommendation has been issued that there is no need for a compulsory insurance scheme for natural risks in Germany. "This was an ongoing discussion for some time now", Frank THYROLF, International Affairs, Senior Manager Central and Eastern Europe, GDV - German Insurers Association told the audience.

The German Federal Government is currently not involved in any kind of risk transfer mechanism or similar solution - but relies instead on the private market. Instead, the better way would be to encourage the public to purchase insurance on a voluntary basis. It is necessary to make the public more sensible of the danger posed by natural hazards, to start a nationwide federal educational campaign etc. "The best protection that people can get is prevention together with insurance", GDV officials have stated with the same occasion.

The German insurance market is the biggest non-life market in the European Union and the third life market. 460 insurance companies are active in the country.

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