German insurers' disciplined pricing means carriers should be well-positioned to absorb heightened weather-related losses, despite potential record natural catastrophe claims in 2021, according to a new AM Best commentary.

In its new Best’s Commentary, “German Insurers Well-Positioned to Respond to Flooding Claims”, AM Best notes that the record weather-related losses in Germany in 2021 come after previous years of relatively benign claims experience. At this stage, insurance loss estimates caused by Bernd will be driven by how much longer the severe weather conditions continue to cause damage.

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.

To access a complimentary copy of this special report, please visit

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.