The increasing frequency of natural catastrophes causes considerable damage to both private individuals and companies and represents an enormous financial burden. To protect citizens and the economy from the consequences of natural disasters, experts are calling for compulsory insurance against natural hazards.
According to a recent study, almost two-thirds of all households in Germany are already affected by floods, storms and hailstorms. The damage can quickly run into the thousands or even millions. Those affected often need a long time to recover from damage and rebuild their livelihoods.
Experts therefore advocate compulsory insurance against natural hazards to protect private households and small businesses in particular. Such compulsory insurance could mitigate the economic consequences of natural disasters and reduce the financial burden on those affected.
The introduction of such compulsory insurance would signal a responsibility of society as a whole for protection against natural disasters and at the same time relieve the burden on individuals. At the same time, such a measure would help ensure that the population is better prepared for the risks of natural disasters and can respond more effectively in the event of an emergency.
Why is compulsory insurance necessary??
Experts agree – compulsory insurance against natural hazards is necessary. Because regions are increasingly being hit by severe weather catastrophes that cause enormous damage. Without insurance, those affected are left to their own devices and must bear the costs of reconstruction themselves. This can threaten the existence of the company.
Compulsory insurance would ensure that all citizens insure themselves against natural hazards and thus strengthen the principle of solidarity. With more people insured, costs could be spread more evenly and therefore be lower. The more people insure themselves against natural hazards, the lower the risk for the insurers and the lower the premiums.
In addition, compulsory insurance would help to repair damage more quickly and effectively. Because insurance coverage allows reconstruction to begin more quickly. This would not only enable a faster return to normality, but also achieve long-term damage reduction. The faster the damage is repaired, the less consequential damage there is and the lower the risk of future natural disasters.
- In summary, compulsory insurance against natural hazards is necessary to protect those affected, to strengthen the principle of solidarity, and to repair damage more quickly and effectively.
Which natural hazards should be covered?
Experts agree that natural disasters have increased in recent years due to climate change. For this reason, they advocate the introduction of compulsory insurance against natural hazards. But which natural hazards should be covered?
Floods and storms are considered particularly dangerous. These events can cause significant damage and in many cases are also life-threatening. Insurance against these natural hazards should therefore be considered in any case.
But forest fires are now also a major hazard, especially in arid regions. Compulsory insurance should also be considered here in order to protect those affected.
- Other natural hazards that should be considered include:
- Earthquakes
- Floods
- Tornadoes
- Avalanches
Insurance against natural hazards can be very helpful in the event of a loss and can help those affected get back on their feet quickly. The introduction of compulsory insurance could help more people to insure themselves against natural hazards and thus be better protected against the consequences of these events.
Why compulsory insurance against natural hazards is supported by experts
Compulsory insurance against natural hazards has numerous advantages, which is why experts are in favor of it. A significant advantage is the security that comes from compulsory insurance. If all citizens are adequately insured, the financial risks of natural disasters can be better distributed. This would ease the burden on public budgets and stabilize insurance rates.
In addition, compulsory insurance strengthens the community of solidarity. Every individual contributes to the community’s protection with his or her insurance premium. Broader participation results in a higher collective volume, which strengthens insurance coverage overall.
Another important benefit of compulsory insurance against natural hazards is the support it provides for those affected. In the event of damage, insured persons can be compensated more quickly and more easily, since the insurance has the character of law due to compulsory coverage. This will speed up and facilitate the provision of assistance to the injured parties.
- Conclusion: there are numerous advantages that arise from compulsory insurance against natural hazards. Above all, security, solidarity and rapid support for those affected speak in favor of this. Experts therefore advise introducing compulsory insurance to strengthen financial stability and the common good.
Countries with compulsory insurance for natural disasters
In various countries around the world, the introduction of compulsory insurance against natural hazards is being considered. Some countries already have this requirement, including:
- France: In France, compulsory state insurance against natural disasters has been in place since 1982. The insurance will be financed by a levy that all property owners will have to pay.
- Japan: known for its frequent earthquakes, Japan has had mandatory insurance for property owners against earthquakes and tsunamis since 1966. The insurance is organized by the state and financed by contributions.
- Chile: The Chilean government introduced mandatory insurance for earthquakes and tsunamis in 2011 after the country was hit by several natural disasters. The insurance is offered by private insurance companies.
Other countries such as the USA, Canada and Switzerland do not have compulsory insurance for natural disasters, but leave it up to property owners to insure themselves against damage caused by natural disasters.
However, experts recommend that more countries introduce mandatory insurance to better cushion the financial impact of natural disasters on citizens.