Andreas Brandstetter, CEO of Uniqa, makes a dramatic appeal to politicians to take the consequences of climate change seriously and tackle them economically. He calls for large-scale reforms.
“Kron”: With a house in the Kamptal you will be affected by the flood yourself. Can you insure a society or a country against natural disasters?
Andreas Brandstetter: You can do it. Certain countries show us this: Belgium, France and Switzerland. The model that we presented to the politicians in Austria a long time ago is the Belgian model: for a few euros per month – about ten – all people in Austria who have home contents insurance are protected against storms of any kind, against disasters in summer or winter. , insured. 100 percent of the new value is insured and not, as with the disaster fund, 20 percent of the current value.
Is this a good deal for you?
This is not a matter for the insurance companies. If you look at it in the long term and natural disasters become more common, insurance companies will not get rich.
Why should I be insured if I am not at risk of flooding if I live on the 5th floor in the 3rd arrondissement?
Because at some point, Vienna’s 3rd district will also be hit by natural disasters. The whole of Austria will be more affected by natural disasters in the coming years and decades. There could be other consequences of climate change, such as a massive increase in heat. For many, many years we have been pointing out to governments and politicians what is happening in Austria: the consequences of climate change are visible. This comes as no surprise to us.
There have always been storms and flood disasters. Do they really increase so dramatically in frequency and strength?
We know that one degree of warming means seven percent more moisture and therefore dramatically more heavy rainfall. Austria is the country in the world fourth most affected by natural disasters in relation to gross domestic product.
Why?
Because we are so exposed because of our topography: as a landlocked country with a very unfavorable continental position. We must take the necessary measures to economically manage the consequences of climate change. It is inconceivable that such damage is not insured.
Doesn’t a Susi worry-free insurance lead to letting go of personal responsibility when it comes to protection against floods and storms?
Prevention remains part of the problem. How will spatial planning take place in the future? Kurt Weinberger from the hail insurance company always rightly points out how many areas in Austria are covered with concrete. We also need to manage our investment flows differently. As an insurance sector, we are the largest investor in Europe. We have around €11 trillion of assets under management across Europe that we manage. In Austria that is 100 billion euros. We want to invest these funds much more in green assets: solar energy, wind energy, water. This green transformation will only fail if the approval process takes seven, eight, nine years before such a power plant is built.
Does that already sound like a central requirement for the future federal government?
This is a proposal that we are vigorously discussing.
Why did it fail? A Minister of Green Infrastructure should not be far removed from such an argument?
I respect everyone currently involved in politics at the local, state or federal level. This requires a high degree of resilience and a thick skin. As an economy, we wanted to commit to investing in more green assets to accelerate the green transformation while supporting private pension provision by getting tax relief for customers. No chance.
Does that sound angry?
What makes me angry is that something always has to happen before there are consequences. We must seriously ask ourselves: when are we going to tackle reforms in this country? This includes pension provisions, aging with dignity, education and migration. We live in the beautiful Austrian house, which has become somewhat dilapidated and vulnerable over time. As an adult father, I know we need to make urgent repairs.
Do you remain optimistic?
When I look at the forecasts for 2025 in Austria, but also in Germany, there is little reason for optimism – if we continue like this. It is important to take countermeasures. Our prosperity will be lost if we do nothing. People can tolerate the truth. You just have to communicate it clearly.
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.
