vzbv demands all-risk coverage for everyone

Now the consumer advocates have spoken out in matters of elementary protection. The Federation of German Consumer Organizations (vzbv) explains its ideas in a position paper. Among other things, it calls for “affordable natural hazard insurance protection for everyone”, which is to be developed in a multi-stage process under “weighing possible encroachments on fundamental rights”.

The increasing weather-related loss events make the need to protect yourself against these natural hazards clear. The natural hazard insurance is essential here for residential buildings, according to the vzbv. The market penetration of this insurance in Germany is still far too low. Only 46 percent of private properties are currently insured.

Since the vzbv fears that the insurance density will increase sharply in the coming years, the association proposes the following measures:

1. A legal model of all-risk coverage, including all natural hazards, should preferably be established for residential building insurance in the Insurance Contract Act.
2. According to this, consumers should first be offered comprehensive insurance protection. You could then actively deselect elementary insurance. The procedure coincides with the current model conditions of the GDV for residential building insurance. The risk protection must, however, be extended to all natural hazards.
3. Insurers should support the conversion of old contracts to the new insurance conditions. To this end, they should present both product variants to consumers in an understandable way and state the respective insurance premium.
4. A broad information campaign should accompany the introduction of all-risk coverage. In doing so, information deficits must be countered with target-oriented, targeted activation of consumers.
5. Two years after the introduction of all-risk coverage, an evaluation should be carried out to determine whether this measure is effective. Should it turn out that it is difficult for certain consumer groups (in ZÜRS 4 or in the event of termination due to damage) to obtain insurance cover, for example because the insurance premiums are “deterrent” or an insurance rate of less than 80 percent is achieved, an insurance obligation must be introduced become.
6. There must be a mechanism that relieves particularly stressed consumers in risk areas. It is conceivable, for example, to reduce the premium through deductibles.
7. If the instrument is not sufficient, the corresponding contracts could be bundled in a bad risk pool. This also acts as a central point of contact for problem cases. Either the pool helps to find an offer in the free market or it provides insurance cover itself. The other policyholders co-financed this pool by adding a surcharge to their insurance premium.

The state also has a duty

The vzbv emphasizes that a holistic approach must be taken when regulating private insurance protection against natural hazards. This means that the state must implement accompanying measures:

1. Default coverage that goes beyond the maximum limit of insurance coverage available on the market through direct insurers and reinsurers,
2. accompanying measures in building regulations and planning law,
3. Preventive measures (e.g. against floods, storm surges and landslides),
4. a tax promotion of flood protection measures analogous to
5. energetic building renovation and
6. Support services with regard to the affordability of the insurance premium.

Consumers who have not insured themselves would have to bear the consequence and bear their own damage.

Author (at): versicherungsmagazin.de

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