German insurers are preparing for significant losses due to recent floods in southern Germany, with early reports already coming in, according to GDV Managing Director Jörg Asmussen. However, it's too soon to estimate the full extent of the damage until water levels recede.

Asmussen emphasized the industry's readiness, noting that insurers have plans in place for such catastrophes, with staff and external support being mobilized to process claims efficiently. Companies are usually prepared for such major catastrophes," Asmussen emphasized. "The insurers have special deployment plans for such cases. They are pooling their staff on site and in administration in order to be able to quickly record and process claims reports."

The economic impact will also depend on how many affected properties have natural hazard coverage. While 94% of buildings in Baden-Württemberg are insured against natural hazards, only 47% in Bavaria have such coverage.

Asmussen also highlighted that compulsory insurance is not a standalone solution, advocating for more robust flood protection measures, including building bans in flood-prone areas and the use of water-resistant materials to mitigate future risks. "Insurance alone is not a solution. In the process, state and individual flood protection fall by the wayside," Asmussen said.

Moreover, according to the official figures, more than 300,000 addresses in Germany are threatened by flooding. Buildings in flood areas must be given special protection, a GDV article reads, adding that this requires extensive preventive measures. In addition, there should be a clear ban on building new buildings in areas exposed to flooding. "It is dangerous and endangering that building land continues to be designated in flood areas and that new construction is allowed," says GDV Deputy Managing Director Anja Käfer-Rohrbach. "In addition to the enormous risks that already exist, there are also others. We now need a clear legal ban on building in flood areas."