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Germany’s Floods Will See ‘Sizable’ Protection Gap. Could Insurance Demand Increase?

July 22, 2021

With an insured price tag of €4 billion to €5 billion (US$4.7 billion to $5.9 billion), economic losses from Germany’s recent floods are likely to be significantly higher, which highlights a sizable insurance “protection gap.”

This protection gap – or the proportion of an economic loss that is uninsured – could lead to increased business opportunities for insurers, especially as the awareness of climate change risks grow, according to several reports about Germany’s catastrophic floods, which occured July 12-18 after torrential rainfall caused by the storm “Bernd.”

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