Extreme weather events in Europe highlight need for property insurance

Over the past 40 years, extreme weather events in Europe have resulted in approximately 500 billion euros in economic damage, with less than a third of this amount insured. Slovenia has been particularly affected, ranking among the highest in terms of economic damage per capita. The floods that occurred last year alone caused nearly 900 million euros in direct damage, while insurance payouts were only about 152.3 million euros. This significant disparity highlights the urgent need for better property insurance coverage among the population. Finance Minister Klemen Boštjančič emphasized that nearly 20% of Slovenia's population lacks property insurance, as revealed by the Institute for Economic Research. He pointed out the necessity of addressing the so-called insurance gap, especially in light of the increasing frequency of natural disasters attributed to climate change. The government is actively working on systemic solutions to encourage insurance uptake, including potential benefits for those who secure proper coverage. In response to the devastating floods in August, the state prioritized restoring normalcy through various measures, including emergency legislation and securing financing from multiple sources. However, the focus is now shifting towards raising public awareness about the risks associated with natural disasters and the importance of insuring properties against such events. The establishment of a working group involving government representatives, the Insurance Supervision Agency, and the Slovenian Insurance Association aims to foster collaboration in addressing these challenges. The overarching message is clear: individuals must take responsibility for protecting their assets through adequate insurance coverage.