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German insurers well-positioned to respond to natural catastrophes in 2021

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      <subfield code="a">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.</subfield>
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