Many people in the flooded areas do not know how to rebuild their homes. Does the state have to pay everything and should there be compulsory insurance in the future?
After the flood disaster in western Germany, there was a controversial discussion about compulsory insurance against natural hazards.
The Munich economist Monika Schnitzer thinks it makes sense, “if you want to prevent some people from foregoing such insurance, trusting that they will receive help from the state in the event of a disaster,” said the member of the Advisory Council (“Economy”) of the “ Wirtschaftswoche ». However, the level of the premiums must be matched to the level of the risks. “Whose house and property are more at risk should pay higher premiums,” Schnitzer explained.
Damage caused by natural forces is defined as damage caused by natural events such as heavy rain, floods or landslides.
The President of the Kiel Institute for the World Economy, Gabriel Felbermayr, also advocates compulsory private insurance. “This would have to be equipped with a deductible so that the incentives for self-protection remain upright,” he told the magazine. The premiums should “be adapted to the existing risks, as is the case with other insurance companies”. The state should help in a transition phase when owners of houses in floodplains were suddenly confronted with high premiums.
In contrast, the President of the Ifo Institute, Clemens Fuest, sees “no sufficient justification” for compulsory insurance. If politicians nevertheless decide to do so, they should “definitely be private”, and there would have to be “a very high deductible so that the false incentives to build in flood-prone areas are kept within limits”.
The Federal Association of Consumer Organizations (vzbv) had previously recommended insurance against natural hazards to homeowners, but rejected compulsory insurance as it would encroach on basic rights. Vzbv board member Klaus Müller spoke out in favor of a legally anchored principle of all-risk coverage. “This would give consumers the right, for example, to initially secure their houses against all risks. But you can also deselect individual risks, ”explained Müller. The Baden-Württemberg Prime Minister Winfried Kretschmann announced on Tuesday that he would again advocate compulsory insurance at the Prime Minister’s Conference in autumn.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
