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Press release content from Business Wire. The AP news staff was not involved in its creation.

Best’s Commentary: German Insurers Well-Positioned to Respond to Flooding Claims

July 21, 2021 GMT

AMSTERDAM--(BUSINESS WIRE)--Jul 21, 2021--

German insurers’ disciplined pricing means carriers should be well-positioned to absorb heightened weather-related losses, despite potential record natural catastrophe claims in 2021, according to a new AM Best commentary.

In its new Best’s Commentary, “German Insurers Well-Positioned to Respond to Flooding Claims”, AM Best notes that the record weather-related losses in Germany in 2021 come after previous years of relatively benign claims experience. At this stage, insurance loss estimates caused by Bernd will be driven by how much longer the severe weather conditions continue to cause damage.

AM Best believes these latest events, as well as losses earlier in the year, will reignite debate in Germany about the creation of a state-backed natural catastrophe scheme versus making elemental insurance cover compulsory. Unlike many other European countries, Germany has no such scheme in place and flood risk is excluded from standard industrial, commercial and homeowner policies. While flood cover may be added as an extension (bundled with earthquake, subsidence, landslide, snow pressure and avalanche cover), insurers can be reluctant to accept risks, mainly due to a lack of widespread reinsurance cover.

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To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=310966.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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View source version on businesswire.com:https://www.businesswire.com/news/home/20210721005770/en/

CONTACT: Konstantin Langowski

Senior Financial Analyst

+31 20 308 5431

konstantin.langowski@ambest.comRichard Banks

Director, Industry Research - EMEA

+44 20 7397 0322

richard.banks@ambest.comDr. Angela Yeo

Senior Director, Analytics

+31 20 308 5421

angela.yeo@ambest.comEdem Kuenyehia

Director, Market Development &

Communications

+44 20 7397 0280

edem.kuenyehia@ambest.com

KEYWORD: EUROPE UNITED STATES NETHERLANDS NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 07/21/2021 12:24 PM/DISC: 07/21/2021 12:24 PM

http://www.businesswire.com/news/home/20210721005770/en