German insurers paid out record amounts in 2021 due the high losses incurred from natural disasters, an industry group announced Monday.
The cost of floods, storms and other disasters led to payouts of about 12.5 billion ($14.2 billion) for insured houses, household goods, businesses and motor vehicles, according to the German Insurance Association (GDV).
The vast bulk of that figure (8.2 billion) came from the July floods that devastated areas of Rhineland-Palatinate and North Rhine-Westphalia and killed more than 180 people. The floods sparked a discussion on compulsory insurance for natural disasters and restrictions on building areas in flood-prone zones.
In June, severe hailstorms caused damage to vehicles and property worth millions of euros.
These made 2021 “the ugliest natural hazard years since statistics began in early 1970s,” GDV CEO Jrg.
The 2021 payouts even came ahead of 2002, when August floods and devastating storms contributed to an annual total of 11.3 billion in payouts.
According to the German insurance industry the average annual long-term cost is 3.8 billion.
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Floods in western Germany cause mass destruction
People trapped on roofs after houses collapsed
Heavy rainfalls and storms decimated Germany’s western states. Rivers burst their banks, flooding villages and towns. Torrential overflow caused vehicles to be washed away, destroyed bridges and roads, and some houses were reduced to rubble. Some survivors remained on their rooftops for hours until they were freed by helicopters.
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Floods in western Germany cause mass destruction
Once-in-a century floods
The death toll of 200 and the damage caused by the flood made it one the worst disasters to strike the country in over 50 years. In Ahrweiler in Germany, 1,300 people were reported as missing during the floods.
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Floods in western Germany cause mass destruction
Shuttered roads
Some areas still have power and phone lines down, and at least two major highway roads need to be repaired. The infrastructure damage has hampered rescue efforts and could make it difficult for affected regions to recover.
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Floods in western Germany cause mass destruction
Rescue workers are at risk
Bernd Schneider (chairman of the NRW Firefighters Association) stated that at least four firefighters in North Rhine-Westphalia were killed during rescue operations after Wednesday’s flooding.
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Floods in western Germany cause mass destruction
Dams are at risk of burst
The flooding has caused dams to reach their limits and are at risk of overflowing due to the heavy rainfall. The flood caused damage to water facilities and led to a water shortage in certain regions.
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Floods in western Germany cause mass destruction
This is a terrifying situation
Angela Merkel, Chancellor of Germany, visited Schuld to assess the damage and talk to residents and emergency workers. She called the situation “terrifying” but demanded more to address climate change after the floods.
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Floods in western Germany cause mass destruction
Army sent to aid in
Over a thousand soldiers, plus more than 200 military trucks, have been deployed in West Germany over the past few days as volunteers line up for flood victims. As the flood waters recede, questions are being raised about whether residents were given warnings in time. Critics argue that the loss would be much lower if the country was better prepared for disaster.
Climate change worsening disasters
Climate change is expected to lead to increased losses from severe storms, hail, floods and flooding in Germany in the future.
Insurance giant Swiss Re estimated earlier this month that natural disasters had caused $105 billion in damages globally, with hurricane Ida in the US costing $30-32 billion.
Also on Monday, UK charity Christian Aid estimated that the 10 most-expensive weather disasters caused more than $170 billion in damages in 2021 $20 billion more than in 2020.
According to its annual assessment, the 10 events were made worse by man-made global climate change. They together killed at most 1,075 people and displaced at least 1.5 million.
Its most costly events were hurricane Ida, flooding and damage in Germany and Belgium (which was estimated at $43 Billion in losses), winter storms and flooding in Texas, flooding and flooding in Canada, Henan province in China, and late spring frosts and damage in France.
Christian Aid’s climate policy lead Kat Kramer stated that “the costs of climate change were grave this year.”
aw/msh (dpa, AFP, Reuters, AP)
