Not all damage caused by natural disasters is currently insurable. Voices such as the Styrian Chamber of Commerce are therefore calling for compulsory insurance against disasters. The Labor Chamber is opposed because it fears a high burden for consumers. The responsible ministries have already announced that there will soon be no more national catastrophe insurance.
Extreme weather events are currently on the rise, as the events of recent days have shown. The Austrian insurance industry is now demanding legislative changes so that suitable products against natural disasters can be offered at affordable premiums.
In a broadcast on Wednesday, she proposed a solution based on the “Belgian model”. Cover for natural disasters must be integrated into fire insurance. This also makes sense in Austria, as almost all households and companies have fire insurance.
In general, there are already insurance policies with a legal claim in many European countries, it said. The proposed solution would relieve the municipalities, the federal states and the federal government, said the vice president of the Austrian insurance association VVO, Klaus Scheitegel.
Especially with an increasing risk of storms with flooding, hail damage or landslides, the question arises whether the insurance cover is sufficient or whether help from the disaster fund is necessary. The insured amounts vary from provider to provider and range from several thousand euros to 50,000 euros. In individual cases, however, not all damage may be covered.
Finance Minister Brunner dismisses it
The Labor Chamber assumes that compulsory catastrophe insurance would make the product more expensive. Finance Minister Magnus Brunner (ÖVP) has already rejected the insurance industry’s proposal. In the Ö1 “Mittagsjournal” he referred to the existing disaster fund. Chancellor Karl Nehammer (ÖVP) promised to increase the funds. “If we know the extent of the damage and an increase in federal funding is needed, we will do it,” he said in a broadcast.
Here you see a tweet about Karl Nehammer’s disaster fund.
The governor of Carinthia, Peter Kaiser (SPÖ), called for more financial resources, because preventive material, among other things, would have to be purchased. In this way, better working conditions should be created for the emergency services. The country itself announced ten million euros in aid to communities and interest-free loans.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
