But the insurance companies only offer small lump sums, usually 5,000 to 10,000 euros. Old policies, which are no longer sold and are rare today, still cover up to 50 percent of the damage.
The problem is that usually only residents in endangered areas want to afford such expensive premiums. The insured community is not large and therefore cannot financially cover enormous disaster damage. Anyone living on the 7th floor in Vienna is hardly willing to pay their premiums to cover flooding in the Kamptal.
“Only a collective, solidarity-based solution can make insurance against natural hazards possible. It must be ensured that there are suitable legal regulations that allow insurers to spread the risk accordingly,” says Rémi Vrignau, head of the Insurance Association and CEO of Allianz Austria, appealing to domestic politicians. Only then can insurance products against natural hazards be offered “at a price that is affordable and acceptable for customers.”
Ralph Müller, General Manager of Wiener Städtische, sees a “great need for action” in order to better cushion the effects of natural disasters. In addition to a bundle of measures, an adjustment of insurance cover is also necessary, “for example through voluntary higher insurance against natural hazards”. Finally, “there is also a discussion about a solidarity insurance solution between the insurance industry and the public sector against storm damage”. In recent years, the industry has often approached politicians with suggestions. After the flood of the century in 2002, a “disaster pool” of insurance companies and the public sector was already being considered.
From two euros per month
There are functioning models in Europe. Austrian insurance companies prefer Belgium, where coverage for natural disasters is a mandatory part of fire insurance. In Austria, such additional coverage would start at two euros a month, the industry estimates.
Compulsory insurance is of course politically tricky. The ÖVP is committed to voluntary insurance. The FPÖ, SPÖ and Neos are also against it, all arguing that it would increase costs. The Greens are considering a solidarity fund into which all property owners would pay.
“Disaster fund clearly needs reform”
Turkey farmer Petra Henschl-Winkler is unlucky enough to have her family business in eastern Styria. After the floods in June, in which several thousand animals drowned, she was “fobbed off” with only 30 percent of the damage by the disaster fund. If the business had been located one kilometer further away in Burgenland, “we would have received 100 percent,” the farmer complained in “Im Zentrum.”
Federalism reigned until the fund was founded in 1966. Payments are made accordingly. “It cannot be the case that those affected in some federal states only receive a relatively small proportion of the damage,” says the SPÖ. For example, victims in Lower Austria only receive up to 20 percent, and in hardship cases up to 50 percent. In Salzburg, it is 30 percent. Burgenland issued a special guideline in the summer and has since covered 100 percent.
Those affected who have private insurance and have applied for help from the disaster fund often experience a nasty surprise. The state aid is reduced by the amount of the insurance benefit. The industry views “the offsetting between the disaster fund and private insurance benefits critically. Those who make private provisions should also benefit from it,” says Christian Eltner, General Secretary of the Insurance Association.
Citizens have no legal right to the payment of aid money. The FPÖ has now requested this in the National Council, but only the SPÖ agreed.
Return to the budget
“It is difficult for those affected to understand that the neighboring community can have completely different guidelines,” the Neos say, and the fund “clearly needs reform.” This is also what experts are calling for, the KURIER reported. In the last few years alone, hundreds of millions of euros have flowed back into the budget instead of being invested. For the ÖVP, the functionality of the fund is paramount; help must be provided as quickly as possible. This can also be done in a federal structure.
andrea.hodoschek@kurier.at
