Increased flood damage reported in Thuringia during the year 2024

Soaring Insurance Bills for Thuringia's Weather Troubles in 2024 🌧️❄️

Prepare for a stormy wallet! Insured damages from weather-related disasters nearly doubled in Thuringia last year, racking up a whopping €106 million euros, as per a GDV report snagged by the German Press Agency. Compare that to just €54 million euros in 2023.

Home and car insurance policies bore the brunt of this calamity. Property insurance, which covers structures, belongings, and commercial properties, incurred €63 million euros in damages. Out of this, €17 million euros resulted from watery calamities like floods, and a staggering €46 million euros from storm and hail damages. Auto insurers shelled out €43 million euros for weather-damaged vehicles.

Harsh weather madness, especially in the southern parts 📍

We're not just talking about Thuringia. Across Germany, natural disasters cost insurers billions in 2024. Over at the GDV, they tallied an astounding €5.7 billion euros from property and car insurance claims—much like the bill in 2023. More than half of this damage hobbled the two southern states of Bavaria and Baden-Württemberg, both havens for crazy floods last year. You can bet the true damages are much higher, as not everything gets insured.

Enough is enough, says the GDV boss, Jörg Asmussen! "Adapting to climate change must be a top priority for our new government," he roared. "Insurance alone can't prevent this chaos. For lasting security—for people and infrastructure—we'll need a holistic approach that combines insurance solutions and preventive measures."

Thuringia
Insurance bill
Weather damages
Natural disaster
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GDV
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Munich
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Car insurance

Thuringia, like many parts of central and eastern Germany, is falling victim to natural threatens like excessive rain, severe winds, river floods, and—to a lesser degree—droughts and landslides [5]. Storms and heavy rainfall pose the biggest threat to property insurers due to their frequency and impact.

Insurers and policyholders are starting to feel the burn.- Higher premiums for properties with increased exposure to flood and wind damage [5].- Properties in high-risk zones could experience lower valuations, affecting insurance balances and investment appeal [5].- Advanced risk assessments are becoming more widespread, with higher rates or stricter conditions for properties in flood- and storm-prone zones [5].

Shocker: More claims mean bigger bills. Germany's marching toward more frequent and intense weather events [1][5], leading to a spike in payouts for flood and storm damage. Acute events, such as heavy downpours or storms, can cause major losses for insurers, possibly affecting their reserves and underwriting practices long-term [1][5].

Cue the long-term predictions. Climate models project an increase in the frequency and intensity of storms and heavy rainfall in central Germany, including Thuringia. This uptick in weather weirdness can push insurance balances to the brink [1][5]. There's a chance some extreme years could produce losses far greater than the historical average.

The insurance industry and local community are taking steps to curb the risks. However, these measures don't completely cancel out the rising vulnerability to natural disasters [5]. Since insurance companies and property owners aren't the only players involved, discussions about integrating climate risks into broader financial and insurance frameworks continue at the EU and national level [1][4].

| Factor | Trend in Thuringia/Germany | Impact on Insurance Balances ||-----------------|----------------------------|------------------------------|| Weather events | Increasing | More claims, higher reserves || Premiums | Rising for high-risk properties | Reduced affordability, more exclusions || Property values | Decreasing in high-risk areas | Lower asset base, higher risk || Risk assessment | More precise, data-driven | Tighter underwriting, higher premiums || Adaptation measures | Increasing investments | Mitigates, but does not offset trend |

The community needs to seriously consider implementing a policy that prioritizes environmental-science education, especially in Thuringia, to foster understanding and action against climate-change and weather-related disasters.
With science predicting an increase in the frequency and intensity of storms and heavy rainfall in central Germany, it's crucial for vocational training institutions to offer courses in environmental-science and climate-change mitigation strategies.
As insurance bills swell due to weather-related damages, it would be prudent for financial institutions to invest in vocational training programs that produce professionals skilled in climate-change adaptation and risk management, thereby helping to reduce future claims.