If we fail to slow down climate change, insurance premiums will rise sharply. Jos Baeten, chairman of the board of insurance company ASR, warned about this during the presentation of the half-year figures on Wednesday.
According to Baeten, premiums for weather-related damages such as flooding could rise by as much as a quarter over the next fifteen to twenty years. “And then there may come a time when it is no longer affordable for many people,” the CEO told ANP news agency.
ASR lost 38 million euros extra for damage caused by three severe storms in February. One of these was Eunice, a storm that measured a wind speed of 145 kilometers per hour. Never before has such a strong gust of wind been measured so far inland.
It was not only about fallen trees and blown away roof sheets, but also major damage. In Den Helder, part of a train platform collapsed, in Rotterdam a large inflatable sports hall was destroyed, and there was major damage to the roof of the stadium of football club ADO Den Haag. Industry club Association of Insurers said that “record numbers” of damage reports were received. Four people did not survive the storm.
Creeping damage
For example, insurances offered against extreme weather cover floods, hailstorms and storms, but not droughts, which caused a lot of damage this summer. “Drought damage is often uninsurable,” explains a spokesperson. “Because it is not about an unforeseen incident of which the cause is clear. It is ‘creeping’ damage, for example as a result of a lower groundwater level. That is different from damage caused by a direct storm or hailstorm.”
Also read: Insurers and KNMI join forces in the fight against climate damage
Despite the consequences of the extreme weather, ASR still showed excellent figures. Operating profit amounted to 513 million euros, 19 million less than a year earlier. Turnover was 3.4 billion euros, 3.6 percent higher than a year earlier.
“If you look at the economic turbulence, the war in Ukraine, the rising interest rates, inflation, the huge storms we’ve had – we just had a very good first half year,” said Baeten. The good figures were partly due to low costs and products that, according to ASR, fit in well with customer needs. Investors were equally positive on Wednesday. The price rose by more than 3 percent.
CEO Baeten is “cautiously positive” about the coming six months. But he does point to “great uncertainty” due to, among other things, the turmoil in the financial markets.