Belgian insurers reiterated on Tuesday their call for improved compensation systems in case of natural disasters. They warn that insurance companies would not be able to cope in the event of a large-scale disaster.
Issues within the system were raised following the 2021 floods in the Walloon region, which claimed the lives of 39 people and resulted in €2.5 billion in damage.
"We had to be creative and inventive to ensure that all flood victims were compensated [...] We used an ad hoc protocol, but insurers want a sustainable system, a reliable regulation on which they can rely for good internal management," said Hein Lannoy, CEO of the association for insurers in Belgium, Assuralia.
Since 2021, the legal ceiling for insurers' intervention has been raised to €1.6 billion in the event of a major natural disaster. "But even that is not enough," Lannoy added. The CEO is calling on the Federal and Regional Governments to sit down together to develop the public-private partnership.
Assuralia did not elaborate on the details of the potential new system. "Various solutions are possible," said Lannoy. He believes it is necessary to "start negotiations to find a good balance that allows for coverage at a reasonable price."
Currently, Belgian insurance companies reinsure themselves with international players to cover their major risks, but "if the number of natural disasters continues to increase, it will become more difficult for our insurers to reinsure themselves. We are not there yet, but reinsurance premiums and deductibles are already higher," Lannoy warned.
