Insurable thanks to prevention

My anticipation of summer is somewhat dampened. The severe storms of recent years are still too present in my mind. Hot summers, dry spells, and heavy rainfall are on the rise, which also affects our quality of life. That worries us insurers. The last summer of severe storms was the fourth in a row and caused devastating damage in regions such as Valais, Ticino, the Misox, or the Bernese Oberland.

As insurers, we have a responsibility to be there when people need us. Agriculture in particular suffers from extreme weather. Insurers have responded and cover the corresponding risks. For example, Mobiliar has recently introduced a weather insurance policy that protects businesses against the financial consequences of crop failures. But insurance solutions alone are not enough if the growing risks from natural hazards are to remain insurable. With a comprehensive set of measures, we help prevent or minimize damage, benefiting the general public. We have these measures accompanied by research.

Our focus is deliberately on prevention against natural hazards. For years, we have been involved in public-sector prevention projects and, for example, make mobile flood protection systems available. We are now also helping cities protect themselves against the increasing heat: with sponge city projects that remove sealing and add greenery. Estimates show that every franc invested in prevention avoids five to seven francs in damage. The point is that targeted prevention makes us more resilient.

Thanks to natural hazard insurance, the natural hazard pool, and prevention by private individuals, the public sector, and insurers, natural hazard losses remain insurable. So everything is fine? Unfortunately not. While well over 90 percent of buildings and household contents are insured against natural hazard losses, only 15 percent are insured against earthquakes. Because an earthquake would cause massive damage to the economy and society, much higher insurance penetration is needed here. The best way to achieve this is to integrate the underestimated earthquake risk into natural hazard insurance. The contingent liability, as proposed by the Federal Council, creates only an illusion of security.

An insurable and well-insured Switzerland is a prosperous Switzerland. Private insurers make an indispensable contribution to this.