Overview

• Insured damage from natural hazards reached €5.7 billion in 2024, with over half of losses recorded in Bavaria and Baden-Württemberg.
• Heavy rain and flooding generated €2.6 billion in claims, approximately €1 billion above the long-term average.
• Justice Minister Stefanie Hubig has unveiled legislation to make natural hazard coverage mandatory for new and existing residential insurance contracts.
• State-backed reinsurance is intended to limit premium increases for homeowners while shifting cost risks away from insurers.
• The GDV warns that compulsory cover alone is insufficient and urges a comprehensive natural hazard strategy including preventive building measures, with opt-out provisions still under discussion.