German home insurance rates expected to double

The German Insurance Association (GDV) forecasts that home insurance rates could potentially double over the next ten years.

Industry professionals are expecting a rise in the number of extreme weather events, such as floods and bad weather. This factor is likely to weigh heavily on insurers, who could face the prospect of having to shut down their operations.

The upsurge in natural disasters could therefore have a direct impact on insurance rates.

To counter this threat, GDV recommends the implementation of measures geared towards prevention and adaptation to the impacts of climate change.

For the record, Germany witnessed deadly flooding during the summer of 2021, resulting in almost 200 deaths and over 5 billion USD in insured losses.