Niederösterreichische Versicherung Advocates for Mandatory Catastrophe Coverage in Austria

Will Austria soon have mandatory insurance cover for natural disasters? After the devastating heavy rain events in the south of the Alpine republic, the industry voices for the so-called “Belgian model” are increasing.

Stefan Jauk, Director General of Niederösterreichische Versicherung (NV) demands that the legal framework for a country-wide insurability of various natural hazards should be created in such a way that the area of ​​natural catastrophe coverage can be added to the fire insurance that is already regulated by law.

However, the insurance industry has not yet succeeded in getting political support for natural catastrophe solutions, Jauk criticized the Lower Austrian News (NÖN). Austria’s Finance Minister Magnus Brunner referred in ORF However, on the existing disaster fund. “Compulsory disaster insurance would definitely make insurance more expensive,” added Gabriele Zgubic, consumer protection spokeswoman for the Chamber of Labor (AK) im lunch journal of the ORF.

The Austrian insurance association VVO has been in favor of the so-called “Belgian model” for a long time. “With such a ‘natural catastrophe insurance package’, the policyholder would have a legal right to insurance cover for damage from natural hazards. At the same time, this would result in financial and administrative relief for the federal states, municipalities and the federal government,” emphasized Klaus Scheitegel, Vice President of the Austrian Insurance Association VVO.

Severe storms have caused considerable damage in the Alpine Republic in recent days and weeks. Wiener Städtische now estimates the July storms at around EUR 30 million. With the severe flooding over the weekend, the numbers are likely to rise further. In Carinthia alone, the insurer expects a loss volume of around ten million euros. In Styria the damage will add up to five million euros, in Upper Austria the damage payments will total four million euros, in Tyrol three million euros and in Salzburg two million euros. The VVO estimates the damage from the recent floods, storms and hail damage to be in the hundreds of millions.

Author: VW editorial team